CommInsure has welcomed new Financial Services Council guidelines on group insurance takeover terms.

Head of Industry Funds Frank Crapis says the guidelines give “greater clarification of responsibility at all stages of the transfer process” when super funds switch insurers.

“The new terms will address any major gaps at tender time, while reinsurers will have greater clarity in documentation between insurer and reinsurer and minimising any risk of unfair liability.

“On the trustee side, any gap risks or disputes will be minimised, as well as associated costs being reduced.”

The guidelines define when new insurers take responsibility for cover and explain how disputes between two insurers should be settled.

They also contain expanded occupation definitions, including self-employed and unemployed people and those performing domestic duties.

Mr Crapis says the previous guidance note was limited to employed members.