Insurance through default superannuation will continue to grow in importance as the way in which most people access cover, MLC Life Insurance says in making a submission.

“The group insurance system plays an essential role in the ongoing importance of Australia’s world-class superannuation system, providing a crucial safety net for working Australians”, CEO Kent Griffin said.

“As the government seeks to define the objective of superannuation, recognising the role of insurance in super is absolutely critical.”

MLC has lodged a submission to a Treasury consultation paper on legislating the objective of superannuation, encouraging the government to acknowledge the critical role of life insurance as part of that process.

The consultation paper proposes that the objective of super “is to preserve savings to deliver income for a dignified retirement, alongside government, in an equitable and sustainable way”.

Treasury says legislating an objective will provide stability and confidence to policy makers, regulators, industry and the community that changes to super policy will be aligned with the purpose of the system. It will also ensure a shared understanding of the purpose through the accumulation and retirement phases.