Each year, along with other superannuation fund Trustees, we're required to publish the results of an annual member outcomes assessment for each of our products. This assessment shows how we’ve promoted the financial interests of our members over the prior financial year.
MEMBER OUTCOMES ASSESSMENT – APPROACH
Each year we set, and then assess ourselves against, a number of key focus areas we believe are important in providing a high quality superannuation fund. We’ve completed a three-step evaluation process to assess our performance against the key focus areas:
We’ve compared Total Care Plan Super against similar superannuation funds to show whether the product is competitive with similar products.
We’ve assessed key areas of Total Care Plan Super that are related to member outcomes to determine whether we’re promoting the financial interests of our members. A summary of the results is completed at the product level.
Overall product determination
Finally, we’ve made an overall determination on whether we are promoting the financial interests of our members in Total Care Plan Super. This assessment is based on the matters assessed and also factors in anything relevant within the business or externally.
RICE WARNER REVIEW
For the Total Care Plan Super Member Outcomes Assessment, the process has relied on the Annual Insurance Review conducted by Rice Warner on 2 June 2020.
Benchmarking of Terms and Conditions:
Market Commentary and impact:
The last 12 months have seen the insurance in superannuation industry devote a significant amount of time and resources to Insurance in Superannuation Voluntary Code of Practice (the Code), Protecting Your Super Package (PYSP) and Putting Member’s Interests First (PMIF).
Value of TCPS’ insurance offering:
Rice Warner believed the value of the current Total Care Plan Super insurance offering was in line with the peer group based on their analysis. Note that the overall value of any insurance offering is a balance of premiums, cover levels, terms and conditions and services. For example, tightening terms and conditions may mean that premium rates could be reduced.
Expected Premium Rate Changes:
The likely impact of COVID-19 on premium rates is not yet understood and will depend on experience that is not yet evident. Based on past experience in times of increased unemployment, the average premium rate increases for Total Permanent Disability and Income Protection cover could be in the order of 10% or higher.
This assessment evaluates the performance of Total Care Plan Super in delivering outcomes for our members.
||Insurance terms and conditions rated favourably to peers (100% exceeded their benchmarks), more than one-third (39%) of insurance premium scenarios were lower than the median of peers and 82% of claims were processed faster than the benchmark.
We will continue to improve member outcomes by understanding members’ needs, enhancing the product offering and remaining focused on delivering for members’ financial interests.