K63 Insurance and Superannuation Funds

$900m cost of crash claims

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Original article by Gabrielle Knowles, Alex Massey
The West Australian – Page: 3 : 27-Oct-14

The Insurance Commission of Western Australia’s deputy CEO Lew Watts notes that cyclists, motorbike riders and pedestrians accounted for about 16 per cent of claims made under its compulsory third party polices in the last four years. These payouts exceeded $A900m over the period, and Lew adds that 35 per cent of claims made for catastrophic injuries were by "vulnerable"
road users. The average cost of each claim was $A5.9m

CORPORATES
INSURANCE COMMISSION OF WESTERN AUSTRALIA, WESTERN AUSTRALIA. ROAD SAFETY COUNCIL, WESTERN AUSTRALIA. OFFICE OF ROAD SAFETY, WESTERN AUSTRALIAN POLICE SERVICE

Stress compensation claims surge

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Original article by Nick Toscano
The Age – Page: 6 : 22-Oct-14

Victorian WorkCover Authority figures show that while the number of claims for musculoskeletal complaints and for major sprains and strains has remained largely static since 2008-09, that of psychological injury claims has risen dramatically. They are now the third-largest category of workplace injuries, and the average payout for them has also increased from $A73,000 in 2008-09 to close to $A90,000 in 2013-14. Kate Carnell, ex-CEO of mental health group beyondblue and now CEO of the Australian Chamber of Commerce & Industry, says more needs to be done by employers to tackle job stress early on

CORPORATES
VICTORIAN WORKCOVER AUTHORITY, BEYOND BLUE LIMITED, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Perpetual says Medibank attractive

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Original article by Jessica Gardner
The Australian Financial Review – Page: 13 : 22-Oct-14

The indicative share price range for the IPO of Medibank Private has been set at $A1.55 to $A2. Matt Williams of Perpetual says Medibank will be an attractive investment if the stock is offered at the right price. However, he says Medibank is likely to achieve cost efficiencies in the medium-term rather than immediately after it becomes a public company. He adds that the health insurer could be a player in consolidation of the industry

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, PERPETUAL LIMITED – ASX PPT, QR NATIONAL LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NIB HOLDINGS LIMITED – ASX NHF, BUPA AUSTRALIA PTY LTD, CANACCORD GENUITY (AUSTRALIA) LIMITED, MACQUARIE CAPITAL PTY LTD

Medibank sale to triple George Savvides’s pay with big bonuses

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Original article by Patrick Durkin
The Australian Financial Review – Page: 6 : 21-Oct-14

Medibank Private MD George Savvides will receive a huge pay rise when the company floats on the Australian stock exchange on 25 November 2014. His remuneration will triple from $A1.2 million to $A3.99 million. Savvides’s contribution to the IPO will deliver a bonus of $A750,000 for him, which some analysts believe is excessive

CORPORATES
MEDIBANK PRIVATE LIMITED, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, OWNERSHIP MATTERS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AURIZON HOLDINGS LIMITED – ASX AZJ, NIB HOLDINGS LIMITED – ASX NHF, RAMSAY HEALTH CARE LIMITED – ASX RHC, SIGMA PHARMACEUTICALS LIMITED – ASX SIP

No-fault insurance proposal

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Original article by Alex Massey
The West Australian – Page: 14 : 16-Oct-14

The Western Australian Government will seek public comments on a proposal to adopt a no-fault compulsory third-party car insurance regime. The proposal has the support of Julie Waylen of National Disability Services, who is critical of the current fault-based system. However, a non-fault system is likely to increase the cost of compulsory third party insurance by $A109 per annum. Several Australian states already have a no-fault regime

CORPORATES
NATIONAL DISABILITY SERVICES LIMITED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, INSURANCE COMMISSION OF WESTERN AUSTRALIA

Hard times loom for Future Fund

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Original article by Richard Gluyas
The Australian – Page: 21 : 16-Oct-14

David Neal, MD of the Future Fund, has unveiled a 2013-14 rate of return of 14.3% for the Australian Government’s civil service superannuation liabilities manager. This is up from the previous estimate of 13.9%, and follows a result of 15%-plus in 2012-13. However despite further growth of 2.9% in the first quarter of 2014-15, Neal warns that the performance will now level off due to the tapering of quantitative easing and rising interest rates in the US. This was backed by investment strategy and risk head Stephen Gilmore, while chief investment officer Raphael Arndt said the Future Fund may invest in infrastructure assets privatised by state governments

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN NATIONAL UNIVERSITY

Higher value Super members rate performance of industry funds ahead of retail funds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Oct-14

A Roy Morgan Single Source survey has found that 84.4 per cent of Australians aged 14+ who are members of industry superannuation funds and whose super balance exceeds $A700,000 are satisfied with the financial performance of their fund. Likewise, 76 per cent of retail fund members whose super balance tops $A700,000 are satisfied with their fund. In contrast, just 46.1 per cent of industry fund members and 51.8 per cent of retail fund members whose super balance is less than $A5,000 are satisfied with the financial performance of their fund

CORPORATES
ROY MORGAN RESEARCH LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, UNISUPER LIMITED, SUNSUPER PTY LTD, REST SUPER PTY LTD, HOST-PLUS, AUSTRALIANSUPER PTY LTD, FIRST STATE SUPER, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Seniors call for independent directors after breach

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Original article by Joanna Mather
The Australian Financial Review – Page: 19 : 13-Oct-14

The Royal Commission into Trade Union Governance & Corruption has been told by Cbus member co-ordinator Lisa Zanatta that she leaked account holders’ details to the Construction, Forestry, Mining & Energy Union. Like most other industry superannuation funds, Cbus has a board composed equally of employer association and trade union representatives. This arrangement has now been criticised by National Seniors CEO Michael O’Neill, who argues all super funds should have independent directors

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, ACTU

Life advice so bad it was illegal: ASIC

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Original article by Andrew Main, Ben Butler
The Australian – Page: 21 : 10-Oct-14

Peter Kell, deputy at the Australian Securities & Investments Commission, says a new survey of the life insurance industry shows that standards are disappointingly low. The advice given to some 37% of consumers on such policies was so deficient that it actually contravened the relevant laws. Kell points out that the new Future of Financial Advice legislation puts the onus on providers to act in the best interests of their clients, and that the sector must act to improve its compliance

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, ASSOCIATION OF FINANCIAL ADVISERS LIMITED, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

Rival hits at Medibank for no share giveaway

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Original article by Jessica Gardner
The Australian Financial Review – Page: 5 : 3-Oct-14

Westfund COO Phillip Berner believes that Medibank Private customers’ loyalty should have been rewarded in the health fund’s IPO. Medibank policyholders who pre-register for the IPO may receive a priority allocation of shares, but Berner says they should have been given free shares or some other form of compensation. He adds that some Medibank customers who are unhappy with their treatment in the privatisation may opt to switch funds

CORPORATES
MEDIBANK PRIVATE LIMITED, WESTFUND HEALTH INSURANCE, ROY MORGAN RESEARCH LIMITED, QR NATIONAL LIMITED