Most Australian super schemes provide benefits to members or their dependants on disablement or death. Typically, the cost of that insurance is deducted from the accumulated balances of the members. Those insurance costs are now rising rapidly almost across the board. Increases of 50% to 100% are common.

As a result, fund members will see large increases in the amount deducted from their balances to pay for the insurance. As a sad indictment on the engagement of members in their schemes and benefits, many fund members do not even know that they are insured.

The reason for the premium increases is clear – claims are higher than premiums collected. Continue reading →