Insurance in super confusing to consumers, ASIC finds
/New ASIC research shows that consumers are confused about their insurance within superannuation, being left overwhelmed and upset without being able to get specific advice. The Australian Securities and Investments Commission (ASIC) published research, with the following key findings:
A third of superannuation fund members who are unadvised feel confused, overwhelmed or uncertain when interacting with their super fund when making changes to their insurance arrangements
The insurance arrangements were found to be complex and difficult, with information the person didn’t understand or did not know how to respond to
This confusion caused delays in engaging with their super fund regarding their insurance after their initial interaction
Most members expected simple self-service processes, which was not the case
Respondents felt dissatisfied because they did not receive information specific to their circumstances, with most contacting the fund to see if they had ‘enough’ insurance, whether they should have two of the same policy, or how much cover they should have
This was frustrating because they were referred to a financial adviser
Just half those calling their super fund achieved the goal they set out to achieve, some within one session
The report looked into 50 in-depth interviews with members who engaged with their super fund regarding their insurance arrangements across the last year.
