Ticking off several Royal Commission recommendations, the Australian Prudential Regulation Authority (APRA) confirmed on Friday it has finalised revisions to requirements and guidance relating to insurance in superannuation following extensive industry consultation for over two years.
The changes to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) are aimed at improving superannuation member outcomes by helping trustees select the most appropriate policies for their members and monitor their ongoing relationships with insurers.
The revisions, as outlined in its statement, require trustees to:
- strengthen arrangements to protect members from potential adverse outcomes caused by conflicted life insurance arrangements;
- obtain an independent certification of related party insurance arrangements before entering into, or materially altering, an insurance arrangement, and on a triennial basis; and
- strengthen data management to improve analysis of member outcomes across different groups of superannuation fund members.
The enhancements to SPS 250 will commence on 1 July 2022.