Super account balance erosion due to insurance premiums ‘can be excessive and highly regressive—having a disproportionate impact on members with low income, intermittent labour force attachment and/or multiple accounts with insurance.’ Insurance cover can also provide significant financial protection to vulnerable people. Given this, while we support much of the reform package proposed by the Exposure Draft, we consider that a sophisticated approach is needed to understand the demographics of superannuation members and their insurance requirements.
