QSuper is to become the first super fund to obtain the authority to run a life insurance company.

QSuper members will be insured from July 1 by a wholly owned life company called QInsure.

The fund is the largest in Queensland, with more than 550,000 members from a diverse range of industries and occupations.

A QSuper spokesman told insuranceNEWS.com.au that at present Queensland Government members in the fund are covered by the fund’s self-insurance arrangements, while TAL covers non-government members.

“QSuper uses TAL because of current limitations on our ability to self-insure non-government employees,” she said. “That will cease from July 1 when QInsure launches.”

Under a licence granted by the Australian Prudential Regulation Authority, QInsure will offer death, total and permanent disability and income protection cover.

QSuper CEO Michael Pennisi says the requirements for super funds to use a registered life insurer drove the move to obtain create a life company.

“When we approached the insurance market, we became concerned some of our members, such as police and emergency services workers, wouldn’t be able to access appropriate cover,” he said.

“We wanted to be able to help them create insurance cover that works for them, that they can also change as their lives change.”

Mr Pennisi says the establishment of a wholly owned insurance company will enable the fund to focus on delivering the best cover for members in the future.

“We want to be able to look after our members through the whole claims experience,” he said.

“Based on our analysis, creating QInsure was the best solution for our members and is an example of the fund leveraging its scale to enhance the benefits it provides.”