More than half of super funds aim to include income protection in their MySuper product offering, according to a survey by AIA Australia.

Of 32 executives from 26 retail and industry funds, 55% are looking to include the insurance as a default alongside death and total and permanent disability cover.  

The remaining 45% say they will not include default income protection, citing cost, the personal nature of the cover and difficulty aligning it with reasonable salary levels.

“As a partner to many super funds, we’re encouraged to see there will be greater scope for protecting the most important asset of many Australians – their working income – via default income protection insurance,” AIA General Manager of Life Insurance Damien Mu said.

The executives were also asked if their funds aim to improve member awareness of insurance offerings.

Most (84%) say they will promote group insurance via direct mail. Online marketing is favoured as an alternative by 65%, while 55% will phone members. Only 39% will use aligned financial advisers to raise awareness and 7% will use social media.

Mr Mu says this is surprising, given the increased use of social media to communicate.

“Consumers are becoming more sophisticated as technology becomes an ever-increasing driver in their choices,” he said.

“If members are getting their information and executing their choices via social media and smartphones, funds and their insurers will also have to adapt to this.”