Colonial First State is reducing insurance premiums in its super funds, in a move that should benefit 220,000 members.
Members of FirstChoice Employer Super, Essential Super, FirstChoice Personal and FirstChoice Wholesale Personal super products will all see their insurance premiums reduced from the first quarter of 2022.
The reductions come as AIA has been reappointed as the group insurer for CFS.
The premium reductions will vary depending on member circumstances, but CFS said the average reduction will be 18% across all products and that it will result in $40 million worth of savings for members.
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"We're delighted to reappoint AIA as our provider of insurance following a highly competitive tender process. AIA demonstrated significant uplifts in proposed service, technology, underwriting and claims management capabilities when compared with the other proposals we received," CFS Superannuation chief executive Kelly Power said.
"The reduction in insurance premium for almost 220,000 customers is another example of how CFS continues to share the benefits of our scale with customers. We will continue to review our products and services to ensure our customers receive the best possible benefits at the lowest possible price."
CFS is in the process of establishing itself as a standalone superannuation and investments business following the sale of a 55% stake to global private equity giant KKR, which is expected to be completed in the coming months.
Following completion of the transaction, CFS will be owned by Commonwealth Bank and KKR in partnership.
FirstChoice was one of the 13 MySuper products to fail the Your Future, Your Super performance test. Ahead of the results, it also moved to cut its administration fees significantly, dropping from a flat fee of $60 a year to $10 a year plus 30bps.
The wealth manager is also facing penalties over its conduct in rolling members out of FirstChoice and into its cheaper MySuper product over a period of two years.