K63 Insurance and Superannuation Funds

Satisfaction with private health insurers continues decline

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Dec-17

A Roy Morgan Single Source survey has found that satisfaction with Australia’s private health insurers declined to 71.0% in October 2017, down by 0.2% points for the month and 3.4% points below the same time in 2016. This level is now well down on the peak of 76.4% recorded in June 2015 and is the lowest satisfaction rating since 2010. The top fund was Teachers Health with 83.4% satisfaction, followed by TUH Health Fund (82.8%), Defence Health (82.8%), CBHS (82.1%) and Health Partners (80.9%). The only funds to show improvements in satisfaction over the last 12 months were TUH Health Fund (up 3.7% points) and Australian Unity (up 2.1% points). Less than half the members of the major health funds would be "highly likely" (with a score of 8 to 10 on a ten point scale) to recommend their fund to friends or colleagues.

CORPORATES
ROY MORGAN LIMITED, TEACHERS HEALTH FUND, TUH HEALTH FUND, DEFENCE HEALTH LIMITED, CBHS FRIENDLY SOCIETY LIMITED, HEALTH PARTNERS, AUSTRALIAN UNITY HEALTH LIMITED, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED

Insuranceline tops satisfaction among risk and life insurers

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Dec-17

Insuranceline had the highest customer satisfaction rating among Australia’s 13 largest risk and life insurers in the year to October 2017, according to a Roy Morgan Single Source survey. Insuranceline’s satisfaction rating rose by 5.4% over the year, to 79.2%, which is well above the industry average of 66.2%. Insuranceline was followed by Allianz (75.2%), AIA Australia (73.2%) and Real Insurance (72.6%). The biggest improver during the year was AIA Australia (up 6.6% points), while major brands to show declines in satisfaction over the year were Asteron (down 12.2% points), Zurich (down 9.9% points) and Comminsure (down 4.2% points).

CORPORATES
ROY MORGAN LIMITED, INSURANCELINE HOLDINGS PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIA AUSTRALIA LIMITED, REAL INSURANCE, ASTERON LIFE LIMITED, ZURICH INSURANCE COMPANY, COMMINSURE, ONEPATH AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, MLC LIMITED

Government must keep its hands off super: Keating

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Original article by Andrew White
The Australian – Page: 17 & 21 : 14-Nov-17

Former treasurer Peter Costello recently suggested that a government-run fund could be set up to look after default superannuation contributions. However, this idea does not have the support of former prime minister Paul Keating, who initiated compulsory superannuation. He says this would amount to a monopoly which the Liberal Party would want to eventually sell off to the private sector. The Productivity Commission is currently investigating the best way forward for determining how default super contributions should be allocated.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN LABOR PARTY

Millennials more than double their share of superannuation funds over the decade

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Market Research Update – Page: Online : 6-Nov-17

A Roy Morgan Single Source survey has found that Millennials’ share of superannuation fund balances has more than doubled between September 2007 (6.4%) and September 2017 (14.6%). All three younger generations recorded gains in superannuation market share over the past 10 years. Meanwhile, for the six months to September 2017, satisfaction with the financial performance of industry funds was 58.5%, compared to retail funds on 56.9%. Retail funds increased their satisfaction rating by 0.7% over the last year, while the satisfaction rating for industry funds fell by 1.4%.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Four super funds paid millions to CFMEU

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Original article by Sally Patten
The Australian Financial Review – Page: Online : 6-Nov-17

Four industry superannuation funds made total payments of over $A12 million to the Construction, Forestry, Mining & Energy Union between 2007 and 2016, according to the Australian Electoral Commission. The union-backed funds, which include Cbus and FirstSuper, state the payments covered sponsorship arrangements and fees for union officials for sitting on their boards, but Financial Services Minister Kelly O’Dwyer is concerned that the AEC figures do not reflect the full scope of fund payments to unions.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN ELECTORAL COMMISSION, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FIRST SUPER PTY LTD, BUSS (QUEENSLAND) PTY LTD, MINE WEALTH AND WELLBEING

Size, target returns matter most for funds

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Original article by Sally Patten
The Australian Financial Review – Page: 19 : 30-Oct-17

Frontier Advisors has looked at four factors that are likely to determine a superannuation fund’s performance and compared to them to rates of returns over three years. The factors in question were fund size, fees, targeted return and level of risk taken. It concluded that funds that met the following criteria were most likely to achieve the best returns; they had assets of more than $A10 billion, charged mid-range fees and took mid-range risks, but aimed for higher target returns.

CORPORATES
FRONTIER ADVISORS PTY LTD

Watchdog backflips on super disclosure

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Original article by Michael Roddan
The Australian – Page: 22 : 27-Oct-17

The Australian Securities & Investments Commission has delayed the introduction of parts of its new fee disclosure rules for superannuation funds. ASIC has concluded that more work needs to be done on two elements of the rules, namely the treatment of investment platforms, and costs in relation to property investments. ASIC chairman Greg Medcraft said the rules as they had been originally proposed could have led to inconsistent treatment of asset classes, resulting in a less than "level playing field".

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP

QBE makes first insurtech play

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Original article by Alice Uribe
The Australian Financial Review – Page: 20 : 27-Oct-17

QBE Insurance Group has invested in US artificial intelligence firm RiskGenius, with QBE executive Bob James saying it will help the insurer to develop new products more rapidly. The investment in RiskGenius is the first to be made via QBE’s $US50 million ($A64.85 million) "insurtech" fund. QBE CEO John Neal said at the time of the fund’s launch in March that its investments would focus on data analytics.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, RISKGENIUS, CB INSIGHTS

Medibank fails to satisfy members

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 24-Oct-17

Morgan Stanley’s latest survey of customer attitudes to health insurance policies has found that 48 per cent were likely to consider changing insurers over the next 12 months, up from 41 per cent. Medibank Private had the lowest percentage of customers who would recommend it to a friend, while 50 per cent of Medibank Private customers indicated they would be likely to "shop around" over the next year, up from 40 per cent.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, SUNCORP GROUP LIMITED – ASX SUN, NIB HEALTH FUNDS LIMITED, HBF HEALTHFUNDS INCORPORATED, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF HEALTH

Rise in insurer requests for full medical records

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 16-Oct-17

The federal parliamentary joint committee on corporations and financial services is investigating the $A44 billion life insurance sector. The Royal Australian College of General Practitioners has told the committee that its members are receiving increased requests for full patient records, while it believes strongly that such requests should not be allowed. MDA National believes that patients should be informed if an insurance company has made a request to access their records.

CORPORATES
AUSTRALIA. JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, THE ROYAL AUSTRALIAN COLLEGE OF GENERAL PRACTITIONERS, MDA NATIONAL PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AIA AUSTRALIA LIMITED