METLIFE TO PARTNER WITH CARESUPER
SYDNEY August 10, 2016
CareSuper has announced today that it has appointed MetLife as its insurer from 1 January 2017, when its existing contract with CommInsure expires.
CEO, Julie Lander said that following an extensive tender process, CareSuper had chosen MetLife based on a broad range of criteria including the ability to enhance member experience aided by technology; underwriting and claims philosophy and processes; financial strength; support of the Fund's strategy through innovation as well as sustainable pricing.
Initially, MetLife will take on existing benefit design and terms but Ms Lander said that the Fund wished to work with the new insurer on future design options to ensure that it continues to provide meaningful and relevant cover for its 250,000 members who are largely engaged in professional, service and administrative occupations.
A strong supporter of default insurance in super, Ms Lander noted that the Government had been clear about the purpose of superannuation as a means to build up a nest egg during their working lives, in order to provide an income in retirement to replace or supplement the age pension. In this context, insurance has its place in super to cover the people whose health precludes them working through to retirement age due to total and permanent disablement; or to provide support to members’ families in the case of death.
“We understand that insurance through superannuation is often the only cover people have; so default arrangements need to meet the majority of members' needs as well as have the flexibility to be tailored to meet specific requirements. Insurance in superannuation is a very effective way of achieving peace of mind at an affordable price and doesn't reduce disposable income.
“People don't think twice about insuring their car, but often don't spend enough time thinking about how they would live if they were not able to earn an income due to temporary sickness or permanent disability. It is evident that without the cover they have in super, most people would not take out insurance at all, often with dire financial consequences. Sometimes, the first time they think about insurance is when they have a health problem and if they had to apply on an opt-in basis, not only would they need to provide evidence of health through an underwriting process, but pre-existing conditions may be excluded and cover would be more expensive.”
Ms Lander added that making a claim is one of the most stressful times in a person's life and CareSuper wants to support members and their beneficiaries in this process as much as possible, assessing the relevant circumstances fairly and promptly to enable members to organise their affairs.
MetLife CEO Deanne Stewart said “we are thrilled that CareSuper has chosen to partner with MetLife. We share a common belief in the positive role default insurance has inside Superannuation, ensuring those who can’t work to save for their retirements are still protected. We look forward to providing CareSuper and its members the utmost care, support and industry-leading global best practice.”
CareSuper expressed thanks to CommInsure for its partnership with the Fund for over ten years when over $326 million has been paid in claims, for 2471 members and their families, representing over 90% of all claims notified.