CommInsure has been granted the mandate to provide group insurance for multi-industry fund Nationwide Superannuation Fund in a deal that will commence on July 1 2017, the commencement date for the Turnbull government super reforms.
The mandate follows on the heels of losses of major mandates to provide life, income protection and incapacity insurance to NGS Super, CareSuper and TWU Super in 2016. Those losses followed a horror period when Comminsure was hit by claims of unethical and poor behaviour which included doctors being pressured to avoid claims payment and failing to cover claims using loopholes.
CommInsure, owned by the Commonwealth Bank, was awarded the new mandate by Nationwide Superannuation Fund (NSF Super), with CommInsure’s general manager, life product and distribution Craig Harrison saying the insurer is delighted to have been appointed to provide group insurance for the $548 million fund.
“CommInsure is committed to providing excellent products and services while enhancing the overall experience of being an NSF member,” Financial Standard reported Mr Harrison as saying.
“Our tailored product, claims and service offering for NSF Super members is underpinned by ongoing investment in our digital capability. We look forward to working with NSF Super to deliver long term value to their members,” he said.
NFS is a $540 million not-for-profit fund established in 1987.The awarding of the new mandate does not make up for last year’s three major losses.
TWU Super alone was a $50 million contract serving about 120,000 members in the fund which has $4.5billion in funds under management.
CommInsure’s bid was assisted by digital interaction functions that enable online claiming and to request specific underwriting arrangements for individual cover needs. It will also provide a health and wellbeing program designed for NSF Super members.
“Among the benefits to be provided to members will be enhanced digital and online functionality to meet their insurance needs. Appointing CommInsure fits well with the increased focus the fund has on digital and electronic interaction with members and employers,” Mr Morante said.