Aware hikes fees for former TelstraSuper members

Aware Super has informed former TelstraSuper members' insurance fees will rise following the merger of the two funds, completed in May.

"Before the merger with Aware Super, TelstraSuper informed Personal Plus members that their insurance arrangements were scheduled for review and premiums were likely to increase," Aware said.

"Aware Super has now completed the independent market review, which aimed to achieve the best outcome for members and ensure the new insurance arrangements remain appropriate, fair and competitive.

"Following the review, there will be an increase in premium rates for death cover, and death and total and permanent disablement (TPD) cover. This change only affects your insurance premium - your insurance cover level remains the same."

From 1 September 2026, the premium rates for death only cover are increasing by an average of 12% and the premium rates for death and TPD cover are increasing by an average of 53%.

The changes mean a member aged 38 with fixed default death and TPD cover in the amount of $109,260, and fixed additional death and TPD cover in the amount of $500,000, for a total amount of $609,260 fixed death and TPD cover, would see their annual premium jump from $631.28 to $921.83.

"Premiums are increasing so we can continue to provide members with cover that's sustainable and meets the cost of claims," Aware said.

"The increase also reflects wider trends in claims across the super and insurance industries that are impacting the cost of insurance."

Recent data from the Council of Australian Life Insurers (CALI) showed mental health claims now account for one in three claims paid and these claims for people in their 30s have risen by more than 700% over the past decade.

This rise in mental health claims has spurred ASIC and APRA to call on the industry to take "decisive action" to address the sustainability challenge facing TPD insurance.

In group insurance, APRA and ASIC encouraged insurers to maintain proactive and constructive engagement with trustees and be open to facilitating joint insurer trustee efforts to drive better outcomes for members.

"Structural shifts in claims patterns are often managed through premium increases and reduction in cover rather than more fundamental product redesign. This reflects trustees' competing priorities and resources required to implement more complex product changes," the regulators said.