2023 Annual Outcomes Assessment
Total Care Plan Super (TCPS) is an insurance only product that is offered to superannuation members by Avanteos Investments Limited (AIL) (the trustee).
The Outcomes Assessment for TCPS, for the year ending 30 June 2023, concluded that overall the financial interests of members are being promoted. This document provides a summary of the key findings of the Outcomes Assessment.
The assessment was conducted using data and comparative benchmark reports to analyse the performance of relative to defined criteria. The benchmarking data is obtained from sources such as the Australian Prudential Regulation Authority (APRA), independent industry research houses and in-house member records.
Options, benefits and facilities ☑
TCPS has an outsourced administration arrangement with AIA Australia Limited. Member services, which include claims processing, call centre, communications, website services and complaints handling are managed by AIA. CFS monitors the effectiveness of the administrative services via periodic reviews against agreed Service Level Standards. The standards relating to contact centre, claims handling, administration timeframes and complaint handling were all substantively met.
Insurance strategy ☑
To evaluate the appropriateness of the insurance strategy for TCPS, we used AIL’s Annual Insurance Review 2023, which included benchmarking conducted by an independent research house. The insurance settings and Terms & Conditions of TCPS’s insurance were benchmarked against comparable insurance products and found to be appropriate and comparable. The report concluded that overall the TCPS insurance offer is providing value for money and appropriately supports the wealth protection needs of the members.
Insurance fees ☑
It is estimated that, relative to industry peers, 52.5% members are paying insurance premiums that were ‘at median or better’. As a result, we formed the view that insurance premiums are competitive relative to similar products for the majority of members.
Sustainability ☑
Scale is important as it allows AIL to meet its commitments and negotiate competitive arrangements for members. As of 30 June 2023, based on APRA’s Annual fund-level superannuation statistics, AIL was the 7th largest provider of superannuation in Australia with total super assets of approximately $110 billion and a membership of approximately 821k members.
Operating costs ☑
The administration of this product is carried out by AIA and the administration cost is covered within the insurance premium charged to the members. The administration cost was assessed to be sufficient to cover the small operating expenses incurred in relation to this product.
Dividend payments that were paid to the parent companies were made in accordance with AIL’s Capital and Dividend Policy, which requires that the amount and timing of any dividend is consistent with AIL’ fiduciary duties and members’ best financial interests.
Product evaluation
Having regard to all the factors set out in this document (with particular consideration given to the insurance outcomes delivered to members), we concluded that on balance, TCPS is promoting the financial interests of members.
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.