Almost two-thirds of organisations facing group life premium increases are reviewing their insurance, according to an Aon Hewitt survey.

About 23% have begun the process, while 24% are about to, the poll of 131 organisations shows.

Some 15% have completed a review, while 34% have no intention of doing so.

Those undertaking reviews say the main objectives are cost savings and harmonising insurance arrangements.

Some respondents want to change their insurance offering to employees from a “base-plus” plan to a “total remuneration package”.

Another driver is the fact 60% of organisations pay insurance costs on behalf of employees.

More than half pay all premiums for group life and salary continuance cover.

Aon Hewitt Retirement and Financial Management Principal Ashley Palmer told insuranceNEWS.com.au the cost of group life varies widely.

He says Aon recently conducted an exercise trying to buy $1 million of group death and disability cover for a 35-year-old male. The first super fund quoted a premium of $630 a year, the second $1090, the third $550 and the fourth $590.

“We are seeing some funds facing premium increases of 20-50%, and some with rises above 50%,” Mr Palmer said. “It is the result of having cheap insurance in the past.”