We are committed to helping you better understand your insurance and the important protection it provides. That’s why we have adopted the Insurance in Superannuation Voluntary Code of Practice (the Code).
What is the Code
The Code is the superannuation industry’s commitment to high standards when providing insurance to members. It provides a framework to ensure the insurance cover we offer is affordable and appropriate to your needs.
The Code aims to recognise and improve the benefits of insurance in superannuation. It does this by promoting industry standards and expectations on issues such as:
•making it easier for members to change or opt out of automatic insurance
•providing better support and processes for members making a claim
•improving our communications about insurance, including the impact of insurance fees on retirement outcomes
Our transition plan
MTAA Super already meets many of the Code’s requirements, but we still have some work to do to meet all requirements.
The transition plan below provides an overview of the key aspects of the Code and our planned timetable to comply with those requirements that we do not currently meet.
The Code specifies that all requirements must be in place by 30 June 2021. We intend to be fully compliant with the Code well ahead of that date. We will continue to update the plan to keep you informed of our progress.
Learn about MTAA Super’s insurance offering and options. Learn more
About the Insurance in Superannuation Voluntary Code of Practice
For details about the Insurance in Superannuation Voluntary Code of Practice visit AIST or ASFA.
Related news: MTAA Super to adopt Insurance in Superannuation Voluntary Code of Practice
MTAA Super is amongst the first of superannuation providers to adopt the new Insurance in Superannuation Voluntary Code of Practice. Learn more
An experience refund will be introduced to the group life plan and be in force for the period 1 July 2016 to 30 June 2020.
The experience refund will be calculated with the below formula: 80%*(80%*P – C)
P = premium received in respect of the 4 year experience refund period (excluding stamp duty loadings).
C = incurred claims in respect of the 4 year experience refund period including paid, pending and actuarially determined reserves as agreed between us and the Policy owner for unreported claims and claims reported but not admitted. Claim amounts included into the experience refund formula are on an undiscounted basis. Claims with a date of disability after any policy termination date, but only where we are liable for the claim, for which we receive no premium payments would be included within the last experience refund period.
There will be an interim experience refund calculation for the period 1/7/16 to 30/6/18. This interim calculation will occur at 31/12/18. If the calculation determines an interim experience refund payment is payable, 60% of the calculated amount will be paid as interim experience refund.
The full experience refund calculation for the period from 1/7/16 to 30/6/20 will occur before 30 June 2021. If the amount calculated is less than the interim experience refund paid, claw-back of the over payment will apply.
The experience refund calculation will be recalculated at yearly intervals for a period of at least 5 years after the end of full experience refund calculation period. These recalculations may result in additional experience refund payments or claw-back of experience refund payments already paid.
Once an experience refund (Interim or Full) calculation is completed any amount payable by MetLife to the Policy owner, or by the Policy owner to MetLife will occur within 30 days of the notification of the results of the calculation.
The number of insured lives for experience refund to be payable is a minimum of 175,000 at all times during the experience refund period. Experience refund terms may be re-negotiated if this requirement is not met.
No experience refund is payable if the insurance policy terminates prior to the end of the 4 year experience refund period. In this situation any interim experience refund paid to the Policy owner will be reimbursed to MetLife within 30 days of the termination date.