The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommended that Treasury determine, in consultation with industry, the practicability and likely pricing effects of legislating key definitions, terms and exclusions for default MySuper group life policies (recommendation 4.13).
Commissioner Hayne also recommended that this review should consider the merits of prescribing:
- higher minimum coverage for life insurance than is currently provided for by the Superannuation Guarantee (Administration) Regulations 2018;
- minimum coverage for permanent incapacity insurance;
- maximum coverage for life and/or permanent incapacity insurance; and
- a fixed level of coverage for life and/or permanent incapacity insurance so as to set a standard amount of default insurance across all MySuper products.
The Government has agreed to this recommendation and has released a consultation paper that seeks stakeholder views on the issues raised by Commissioner Hayne in his Final Report.