K63 Insurance and Superannuation Funds

Retailers hit with 10pc hike in insurance cover

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 28-Jan-16

Figures from commercial insurance comparison website BizCover show that small-to-medium businesses continue to benefit from strong competition in Australia’s insurance market. The retail sector is an exception. An insurance policy for a retail business may cost around $A1,700. A non-retail company would pay $A1,000 for a comparable cover. BizCover’s Small Business Insurance Index rose by five points in the fourth quarter of 2015.

CORPORATES
BIZCOVER PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIG AUSTRALIA, QBE INSURANCE GROUP LIMITED – ASX QBE

Target super literacy, says Deloitte

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 4-Dec-15

Russell Mason of Deloitte notes that some trustees of superannuation funds voluntarily undertake a course for financial product advisers, but he argues that it should be compulsory for all of them. The issue of governance standards in the sector is again under scrutiny after cross-bench senators rejected the Australian Government’s proposal for one-third of all super funds’ directors be independent. Former Reserve Bank governor Bernie Fraser will review governance standards in the industry.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL

Super industry told to sort out ‘fit and proper’

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 1-Dec-15

The Australian Government is right to insist on higher governance standards among superannuation funds. JPMorgan global pensions executive Benjie Fraser says it is vital to ensure that only "fit and proper" persons hold managerial and board positions within a super fund. The Government wants one third of super funds’ boards to be independent directors.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, TELSTRA SUPERANNUATION SCHEME, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Tweaking super won’t help women

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 20-Nov-15

The Australian Institute of Superannuation Trustees (AIST) says the gap in the superannuation savings of men and women can only be eliminated by paying women higher salaries and raising their workforce participation rates. The AIST believes that super policy reforms will have a limited effect on the savings gap, which is now 17 per cent.

CORPORATES
AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, DELOITTE TOUCHE TOHMATSU LIMITED

Your insurer likes to watch

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Original article by Ruth Liew
The Australian Financial Review – Page: 7 : 10-Nov-15

MLC will undertake a pilot program in which selected life insurance customers will be issued with a device that monitors their fitness and sleeping patterns. Participants will be able to receive rewards for improving their health and fitness, such as a discount on their insurance policy. QBE Insurance Group already has a similar reward scheme for car insurance customers who use a tracking device to monitor their driving habits.

CORPORATES
MLC LIMITED, QBE INSURANCE GROUP LIMITED – ASX QBE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NIPPON LIFE INSURANCE COMPANY LIMITED, BIG CLOUD ANALYTICS, FITBIT INCORPORATED, NIKE INCORPORATED

Nib upgrades profit forecast for 2015-16

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Original article by Tim Binsted
The Australian Financial Review – Page: 22 : 5-Nov-15

Australian-listed private health fund NIB Holdings has advised that its 2015-16 statutory profit is likely to be within the range of $A90m to $A100m. The group had previously forecast a profit of $A85m to $A90m and has attributed the improved forecast to a strong performance in the first quarter. Chairman Steve Crane says NIB gained more than 23,000 additional policyholders in 2014-15, and now provides health insurance for more than one million people.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF HEALTH

Medibank in sights after shock CEO exit

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Original article by Tim Binsted
The Australian Financial Review – Page: 23 & 30 : 22-Oct-15

Some eight per cent of Medibank Private shareholders voted against the health insurer’s remuneration report at its 2015 AGM. Meanwhile, Kieren Chidgey of Deutsche Bank has expressed surprise over the sudden decision of Medibank CEO George Savvides to step down in March 2016. A number of investors have said they should have been consulted about the departure of Savvides, who has been CEO for 14 years.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, DEUTSCHE BANK AG, VGI PARTNERS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Diversify call to super funds

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 19-Oct-15

Australian superannuation funds are forecast to have some $US2.5trn ($A3.4trn) worth of assets under management by 2020, compared with $A2bn at the end of March 2015. Itay Tuchman of Citigroup says the strong growth in assets under management in coming years will require super funds to further expand the range of international asset classes in which they invest. Meanwhile, Tuchman says Westpac’s move to increase its mortgage interest rates will strengthen the case for a further reduction in the cash rate.

CORPORATES
CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, CANADA PENSION PLAN INVESTMENT BOARD

Big banks grab third of $30b in super fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 12-Oct-15

Research undertaken by Rainmaker on behalf of Industry Super Australia shows that Australia’s four major banks received about 33 per cent of the $A30bn paid in superannuation fees in 2014-15. Retail super funds and not-for-profit super funds accounted for about 50 per cent and 25 per cent of fees respectively. ISA CEO David Whiteley has expressed concern about the level of transparency in the super industry.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Retiring CIO: new board rules will be good for super funds

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 21-Sep-15

Sunsuper will appoint Michael Traill and Andrew Fraser as independent directors. However, CEO Scott Hartley opposes the Australian Government’s proposal to require one-third of super fund’s boards – including the chairman – to be independent. In contrast, outgoing chief investment officer David Hartley favours the push for greater independence of directors. He notes that industry super funds with equal representation by employers and employees have tended deliver good returns.

CORPORATES
SUNSUPER PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SOCIAL VENTURES AUSTRALIA LIMITED, QUEENSLAND. TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN CONSUMERS’ ASSOCIATION, QSUPER LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, KPMG AUSTRALIA PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, TELSTRA SUPERANNUATION SCHEME