In a rare display of mutual support, five industry associations involved in the superannuation sector have presented a united front on group life cover.

The Association of Superannuation Funds Australia (ASFA), Australian Institute of Superannuation Trustees, Financial Services Council (FSC), Industry Funds Forum (IFF) and Industry Super Australia say group life has been successful in providing cover to many people.

“It provides a safety net to millions of Australians who would have otherwise not chosen or been unable to take out life and disability insurance individually,” a joint statement says.

“Automatic default cover in super, provided to members on an opt-out basis, has helped combat the problem of underinsurance in Australia.”

The organisations call for super fund trustees and group life insurers to work together to deliver sustainable benefits for members.

They cite a number of initiatives to achieve this, including the FSC’s Life Insurance Code of Practice, the final version of which will be launched next week.

Other initiatives include ASFA’s protocols for super total and permanent disability (TPD) claims and IFF’s group risk insurance management framework, addressing automatic acceptance levels, TPD definitions, fee arrangements for lawyers and data.

“Group insurance in superannuation is fundamentally the right policy setting for millions of Australians, but it can be improved,” the organisations say.

“We intend to build on these current initiatives to consolidate our efforts in future iterations of industry policy development.”