Life insurers offering group insurance must provide better customer outcomes, Financial Services Minister Stephen Jones said. 

He says the superannuation system remains a vital mechanism for the 5.5 million Australians who rely on it for default life insurance coverage but complaints data indicates the industry has much work to do. 

A third of all superannuation complaints relate to total and permanent disability and income protection and three of the top five types of super disputes relate to insurance, he said, citing data from the Australian Financial Complaints Authority (AFCA). 

“AFCA is receiving two complaints a day just for delays in claims handling… the insurance sector needs to lift its game,” Mr Jones said. 

“For insurance to be a benefit of superannuation, the customer experience must improve. Members have to be at the centre of the system.” 

Mr Jones says in the coming months the Government will release draft legislation in relation to its plan to define the objective of superannuation. 

“Legislating the objective of superannuation will also clarify the task of those working in the superannuation system. The trustees. The advisers. And, yes, the insurers,” he said. 

The Government has already consulted on the benefits, phrasing and implementation of an objective for superannuation.