LGsuper has appointed OnePath Life as the fund's group insurer effective from July 1 this year.

The appointment, which represents an increase of more than $20 million to OnePath's annual premium, was the result of a tender process in late 2011 following LGsuper's merge with City Super.

"We have been building a strong relationship with LGsuper and since the City Super merger our team has worked hard to expand the existing partnership. This appointment reflects the alignment between our group insurance strategy and LGsuper's business definition of value," said Robin Knight, acting general manager for insurance at OnePath.

"Following the LGsuper and City Super merger, LGsuper has been working towards consolidating its legacy insurance arrangements with one group insurer from 1 July 2012, with a view to improving its insurance offering," said LGsuper CEO David Todd.

"The LGsuper board found the proposal by OnePath represented the best overall outcome for our membership."

Prior to the merger, LGsuper had group life cover provided by AIA Australia, while OnePath is the incumbent provider for City Super.