On 16 June 2021, the Government committed that Treasury would undertake a review into determining the appropriateness of occupational exclusions in default insurance in MySuper products. Occupational exclusions mean that default insurance cover is not available (or only partial cover is available) for certain occupations that an insurer has classified as higher risk. Occupational exclusions in default insurance policies affect the automatic acceptance of default cover for some new MySuper members and may also have significant consequences where a member changes occupation.
The review will focus on default cover in respect of life and total and permanent disability insurance which trustees are required to provide to their MySuper members. Insurance in excess of default cover, such as optional units, and income protection, will not form part of the review.
The objective of the consultation is to canvass views from interested parties on the extent of the problem arising from occupational exclusions for new members and for members changing jobs and what options, if any, may be required for changes to the current regulatory framework.