Your home for profit-to-member Super
Join the leading voice in profit-to-member super
Our full list of member super funds
View the upcoming courses in your city
AIST's flagship educational program
Explore the history, rules and regulations of superannuation and how it fits into Australia’s economic landscape – and become RG146 compliant.
Listing of all upcoming events
The premier idea sharing and networking event for Australia’s $1.7 trillion profit-to-member super sector
AIST's annual Superannuation Investment conference
Research, insights and advocacy on the most pressing topics in super
Our response to changes in the political and policy environment
From AIST's governance code to practical guidance and toolkits
Industry news, latest resources and event updates
Stay connected to the latest policy news
Photo, audio and video content
Our mission, vision and values
Meet our team
Our board of directors, constitution and committees
AIST influences policy to make Australia’s
super system fair & sustainable for everyone.
Insurance in superannuation provides a valuable safety net of death and disability cover for most Australians.
Insurance in superannuation delivers enormous benefits for the Australian community and is an integral aspect of our superannuation system.
While there are some exceptions for younger members and smaller accounts, insurance in superannuation is typically provided automatically when a member joins a fund. Members may reduce or cancel their cover at any time. Members can also apply to increase their cover to meet their individual needs.
There have been many recent legislative and regulatory changes that affect how insurance is provided to super fund members.
In addition to adjusting to the impacts of the COVID-19 pandemic (and the associated Early Release of Superannuation program), since 2019, super funds have:
Each of these changes include significant insurance elements.
The PYSP and PMIF reforms required trustees to cease insurance cover on inactive accounts, prevented superannuation funds from automatically providing insurance to members where the member has a low balance, and to not provide cover where the member is under 25 years.
From March 2021, ASIC has also required funds to:
These legislative and regulatory changes were preceded by the Insurance in Superannuation Voluntary Code of Practice developed by the superannuation industry. In development from 2016, the Code commenced on 1 July 2018, and was subscribed to by most APRA regulated superannuation funds.
The Code included provisions intended to improve standards when providing insurance to members of superannuation funds. The Code-owners were AIST, ASFA and the AIST. Many of the provisions in the Code were subsequently recommended by the Productivity Commission and the Financial Services Royal Commission, and adapted and adopted in the PYS and PMIF reforms that made big changes to insurance in super law.
In July 2021, the Code-owners replaced the Code with guidance notes on claims handling and vulnerable members. These follow extensive consultation with AIST member funds and other stakeholders, and were matters not covered by other legislation or regulations.
Many of the elements of the Code have been implemented by many funds to improve the member experience.
APRA’s updated Prudential Standard SPS 250 on insurance in superannuation is also expected (later in 2021) to require trustees to have a strategy to prevent insurance premiums from eroding the retirement income of beneficiaries.
The Productivity Commission enquiry into superannuation recommended an independent review of insurance in super, especially TPD insurance. However, the Government has given no indication if or when this might take place.