Superannuation
Industry fund appoints new group insurer, ups indirect fee

A $2.6 billion industry superannuation fund has brought to an end its long-standing relationship with Hannover Life Re, appointing a new life insurer. At the same time, the fund has increased its indirect administration fee.

Intrust Super recently awarded its group insurance mandate to AIA Australia, ending its 15-year relationship with Hannover Life Re.

The mandate change was effective September 28, with AIA now providing Intrust's members with death and TPD cover.

Intrust Super chief executive Brendan O'Farrell told Financial Standard it was AIA's attention to detail and project execution skills that saw it over the line.

"I am excited that we have partnered with such a professional and client-focused organisation such as AIA Australia," he said.

Commenting on the mandate win, AIA Australia and New Zealand chief executive and managing director Damien Mu said: "We are excited to have established a new partnership with Intrust Super, whose people have a focus and passion to continually deliver great outcomes for their members."

"The partnership will allow us to protect and support the fund's members and their families when they need it most, and to collaborate with Intrust Super on initiatives that will truly make a difference in people's lives."

In another update, the super fund has also increased the indirect administration fee paid by members.

Effective this month, the annual fee has increased from 0.15% to 0.30%.

Instrust said the increased fee comes as a result of the Protecting Your Super legislation.

"Our weekly administration fee will, however, remain unchanged," Instrust said.

Read more: Intrust SuperAIA AustraliaHannover Life ReInstrustBrendan O'FarrellDamien MuFinancial Standard
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