K63 Insurance and Superannuation Funds

US inflation and China woes reduce super growth to 1pc

roymorgansocial Leave a comment

Original article by Hannah Wootton
The Australian Financial Review – Page: 7 : 20-Feb-24

Data from Chant West shows that the median growth superannuation fund posted a return of just one per cent in January. This compares with 2.7 per cent growth in December and a three per cent gain in January 2023. Mano Mohankumar of Chant West notes that a strong performance by Australian and international shares in January was offset by mixed results in emerging and bond markets. He adds that a rise in the US inflation rate and concerns about China’s economic outlook weighed on returns late in the month. The median growth fund gained 7.7 per cent in the year to 31 January, and 7.2 per cent over the last decade.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD

Insurance premiums rise faster than Australia’s inflation, spurred by frequent extreme weather

roymorgansocial Leave a comment

Original article by Josh Nicholas, Jonathan Barrett
The Guardian Australia – Page: Online : 6-Feb-24

The latest inflation data shows that insurance premiums have risen by 16.2 per cent over the last year. In contrast, the annual inflation rate was just 4.1 per cent. An Insurance Council of Australia spokesperson says factors such as the rising cost of natural disasters are contributing to the spike in premiums. Reinsurers are also taking into account the impact of climate change when setting their prices, and any such increases are ultimately passed on insurance companies’ customers.

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED

Future Fund lifts returns on back of equities rally

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 13 : 24-Jan-24

The federal government’s Future Fund has advised that it has posted a return of eight per cent in the year to 31 December. The sovereign wealth fund has in turn reported an annualised return over three years of 7.4 per cent, and 7.6 per cent over five years. The Future Fund’s full-year return for 2023 was boosted by a sharemarket rally in the fourth quarter, which increased the value of its assets by 3.2 per cent. Future Fund chairman Peter Costello says the high inflation environment of the last two years has made it harder for the fund to achieve its mandated return target.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Super fund satisfaction improves since low in July 2023 with strong performances from HESTA, Unisuper & CARE Super

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 24-Jan-24

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 65.9% in November 2023, an increase of 0.9% points from July (65.0%). However, satisfaction with super funds is still significantly higher than the long-term average of 58.2% from 2007-2023, and also higher than at any time prior to the pandemic years of 2021-22 when the measure was at record highs. Customer satisfaction for Industry Funds is down 1.4% points to 68.2% compared to a year ago, although this is the smallest decline of any of the four super fund categories. Customer satisfaction with Retail Funds has declined by 2.7% points to 58.9%, and this category continues to have clearly the lowest customer satisfaction of any of the four categories. Customer satisfaction for Public Sector Funds has in turn declined by 3.2% points from a year ago to 70.7% – the largest decline for any of the super fund categories. A standout performer over the past year has been Self-Managed Funds, which have increased their customer satisfaction by 1.9% points to 75.8% and clearly the highest customer satisfaction of any of the four super fund categories. This is the highest level of customer satisfaction for Self-Managed Funds since May 2022. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 60,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

Stock rally brings super fund returns back into the black

roymorgansocial Leave a comment

Original article by Megan Neil
The Australian – Page: 15 : 12-Dec-23

Data from SuperRatings suggests that the median balanced superannuation fund gained 3.1 per cent in November. This follows negative returns in each of the previous three months, and the research house expects the median fund to achieve a return of about one per cent for the first five months of 2023-24. SuperRatings also estimates that the median fund will post a gain of about 6.8 per cent for the first 11 months of calendar 2023.

CORPORATES
SUPERRATINGS PTY LTD

Insurers’ flood cover options in flux

roymorgansocial Leave a comment

Original article by Liam Walsh
The Australian Financial Review – Page: 15 : 12-Dec-23

Allianz has told a federal parliamentary inquiry into the 2022 floods that devasted large parts of eastern Australia that it is reviewing its customer choice flood cover. Currently one of the few home insurers that gives customers the option of having flood coverage, Allianz indicated it is now considering making it mandatory. For its part, Suncorp has told the inquiry that it has abolished two types of caravan and RV insurance, with these relating to relocatable homes and onsite caravans. It stated they were "unsustainable", due to the risks of associated with being located in caravan parks prone to flooding.

CORPORATES
ALLIANZ AUSTRALIA LIMITED, SUNCORP GROUP LIMITED – ASX SUN

Complaints over super funds soar

roymorgansocial Leave a comment

Original article by Hannah Wootton
The Australian Financial Review – Page: 7 : 8-Nov-23

Data from the Australian Financial Complaints Authority shows that there was a surge in complaints about some superannuation funds during 2022-23. The number of complaints about AustralianSuper rose by 127 per cent year-on-year to 1,750; this includes more than 1,000 complaints about the administration of customers’ accounts. AustralianSuper has acknowledged that its customer service has not met expectations, but says it is taking action to address the issue. The Australian Retirement Trust, Cbus and Hostplus are among the super funds that also attracted a large increase in complaints.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, AUSTRALIANSUPER PTY LTD, AUSTRALIAN RETIREMENT TRUST PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, HOST-PLUS

Super complaints soar 32pc: watchdog

roymorgansocial Leave a comment

Original article by Hannah Wootton, Lucy Dean
The Australian Financial Review – Page: 9 : 2-Nov-23

Data from the Australian Financial Complaints Authority shows that the number of complaints it received about superannuation funds rose by 32 per cent in 2022-23. This includes a 136 per cent increase in complaints regarding delays in processing insurance and death benefit claims. Super Consumers Australia director Xavier O’Halloran notes that some super fund members have had to wait for more than a year to have these claims paid out, and he has called for regulatory action to force super funds to process claims more promptly.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, SUPER CONSUMERS AUSTRALIA

Watchdog puts super funds on conflict notice

roymorgansocial Leave a comment

Original article by Geoff Chambers, Jess Malcolm
The Australian – Page: 4 : 24-Oct-23

The Australian Prudential Regulation Authority has reiterated that the nation’s superannuation funds must comply with their regulatory requirements, such as acting in the best financial interests of their members and avoiding conflicts of interests. Liberal senator Andrew Bragg has raised concerns about Cbus’s decision to invest $500m in the federal government’s Housing Australia Future Fund in late 2022. Bragg alleged that Cbus chairman Wayne Swan has a conflict of interests, given that he is Labor’s president and a former federal treasurer. Bragg notes that Cbus is the only super fund that has committed to investing in the HAFF.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, LIBERAL PARTY OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND

Medibank to trial four-day work week

roymorgansocial Leave a comment

Original article by Jessica Yun
Brisbane Times – Page: Online : 23-Oct-23

Health insurer Medibank Private will shortly commence a six-month trial of the 100:80:100 model, whereby employees retain 100 per cent of their salary for 80 per cent of their time, in exchange for a commitment productivity of 100 per cent. Some 250 employees will participate in the four-day working week trial, with a view to eventually rolling it out across the company. Professor Bronwen Dalton from the University of Technology, Sydney has praised Medibank’s initiative, but she believes that the length of the trial and the number of participants should be increased.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, UNIVERSITY OF TECHNOLOGY, SYDNEY