In a move that could potentially be a game changer for the industry, industry super fund QSuper, with around $60 billion funds under management, has announced that following a major review it has established a wholly-owned insurance company, QInsure.
QInsure will operate as a separate company within the QSuper Group and from 1 July 2016 will take over the death, total and permanent disability and income protection needs of QSuper’s 550,000+ members.
“We’re committed to being our members’ financial wellbeing partner for life, and our new insurance options will give our members sensible default cover and the flexibility to change their insurance as their life progresses and circumstances change,” said QSuper CEO Michael Pennisi.
Currently, QSuper manages the insurance requirements of its Queensland Government members and has a contract with TAL to insure its non- Queensland Government employee members.
Mr Pennisi said while QSuper currently managed the bulk of its members’ insurance requirements, changes to federal legislation required all superannuation funds to have their insurance placed with registered life companies from 1 July.
“QSuper members come from a broad range of industries and occupations. When we approached the insurance market, we became concerned that some of our members, for example police and emergency services workers, wouldn’t be able to access appropriate insurance cover,” Mr Pennisi said.
“These people perform some of the toughest jobs in the community, and we want to be able to help them create insurance cover that works for them, that they can also change as their life changes.”
Mr Pennisi said the establishment of a wholly-owned insurance company would enable QSuper to focus on delivering the best possible solutions for members in the future.
It will be interesting to see whether other industry super funds follow suit over the next few years.
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