Industry Super Group Insurance Controversy: The Solution is a “No-Brainer”
Recent revelations exposed by Four Corners and Fairfax Media over practices of Comminsure and its handling of life insurance claims of industry superannuation group insurance offered by three industry super funds bears a very bad image for Comminsure but all exposes what we have been saying for the past three years of its unsustainable future. It is also a very bad situation for three industry super funds CARE, HESTA & Kinetic caught up in this major controversy that smells of complicacy of these funds.
We have continued to say to our clients for the past four years about the long-term sustainability of group insurance, with the market feeling the effects of a "significant" increase in claims numbers, most reinsurers leaving the market and premiums that don’t cover the claims. It is situation much like “a speeding train heading downhill with brakes into a brick wall”, it is not going to end well and what we are seeing is nothing more than the inevitable.
Whilst we don’t wish to specifically comment on Comminsure’s practices that resulted in a large number of life claims being declined. It sends a clear message that unless you buy an individual insurance contract inside or outside of super and have your situation underwritten by retail life company, the chances are increasingly likely you are going to get a major disappointment. The point of insurance is to make uncertain future health events certain with a payout and group insurance is not going to deliver. There is an old saying fitting to this situation: “the euphoria of a cheap price is soured by the performance of that poor product”. Enough said!
The sad reality is that in many cases you will pay a higher premium for group insurance and greater risk on non-payment of a claim. It seems like a no-brainer to us. Why pay more for less?
Don’t be a victim of the group insurance rort, call us today on 1300 861 143 for an obligation free assessment of your situation.