In a statement, NGS Super said it undertook the tender as part of its regular three-yearly insurance review. Consulting firms Sequential and Rice Warner were engaged to manage the tender on the super fund’s behalf.
The approach adopted went “beyond traditional product and pricing tender management” to take into account “more holistic elements including customer service and insurer capabilities”, said NGS Super.
“To this end, the tender criteria included features such as affordability for members; end-to-end services across underwriting and claims; innovation and technology strength, cultural alignment and governance practices,” said the statement.
NGS Super was one of nine CommInsure group insurance clients contacted by InvestorDaily in March 2016 in the wake of allegations of unethical claims handling by Fairfax Media and the ABC’s Four Corners.
Speaking to InvestorDaily at the time, NGS Super executive manager of customer Dascia Bennett said it is a “massive concern … where you see behaviour that doesn’t meet the ethical standards and the philosophy of putting the member first”.
Ms Bennett confirmed to InvestorDaily yesterday that no NGS Super members were involved in the claims handling incidents raised by the ABC and Fairfax.
She added that there is “no connection” between the allegations against CommInsure and NGS Super’s decision to switch to TAL.
CareSuper announced in August 2016 it will switch to MetLife for group insurance on 1 January 2017, when its CommInsure contract expires.
Following the Fairfax allegations in March 2016, CareSuper chief executive Julie Lander told InvestorDaily her fund was “very concerned” about the allegations and was currently “in dialogue” with CommInsure about the matter.
More to come:
Super objective set too low: ASFA
‘Closet indexing’ crimping active returns
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