Insurance in Superannuation Voluntary Code of Practice

In September 2018 LGIAsuper adopted the Insurance in Superannuation Voluntary Code of Practice (the Code) in its entirety. The Code is the superannuation industry’s commitment to high standards when providing insurance to members of superannuation funds.

LGIAsuper has already commenced a significant body of work to understand what is important to different groups within our member base, and we will work diligently over the next 18 months to deliver the best possible product and service to you. This is an important part of our intention to be fully compliant with the Code by 30 June 2021, particularly including significant changes to the automatic cessation and reinstatement of insurance cover for members where balances are insufficient to justify a spend on insurance premium.

Whilst we are working on the transition plan below at a fuller level of detail, and then implementing the transition plan, we will continue to update it as information becomes available. Most importantly, we will keep you all informed of the changes that will impact your insurance processes or insurance premiums.

Transition Activities Description Date
Benefit Design and Premium Standards (Section 4)

Product redesign to improve affordability and appropriateness for segments of our membership – Complete

Implementation of new insurance design – 1 July 2020

1 July 2020
Automatic Cessation of Cover, Reinstatement and Refunds (Sections 4 & 11)

System and procedural changes to prevent unnecessary insurance for some members, to enable reinstatement of insurance and to allow for premium refunds when necessary.

30 June 2021
All other sections (5, 6, 7, 8, 9, 10, 12, 13 & 14)

System and procedural changes to:

  • Help members make informed decisions
  • Support vulnerable members
  • Verify that our claims handling, premium adjustment and underwriting processes comply with the code
  • Continue to ensure that our external parties promote our insurance products appropriately
  • Keep our staff and service providers appropriately trained
  • Maintain a high standard of enquires and complaint handling
  • Actively monitoring our compliance with all aspects of the code

30 June 2021

Many related initiatives are in place or underway now, with full compliance with the code expected by 30 June 2021