Superannuation funds and group life insurers now have a best practice guide to improve the quality and availability of insurance data for use across the industry.
A collection of life insurance and superannuation bodies have released the best practice guidelines for group insurance data.
Made up of the Australian Institute of Superannuation Trustees (AIST), the Financial Services Council (FSC), the Industry Funds Forum (IFF) and Industry Super Australia (ISA), the group released Guidance Note 33 - Best practice for Group Insurance Data.
At a granular level, the guidance note specifies which data fields should be captured, extracted, reported and stored by super funds and insurers.
"This guidance note recognises that improving the quality of data is a key step towards ensuring best practice in the insurance complaints handling experience," AIST executive manager, policy and research, David Haynes said.
"This initiative will improve data accuracy in the industry, allowing insurers to better price their products, which will benefit consumers," ISA chief executive David Whiteley added.
Separately, the Insurance in Superannuation Working Group - which features these industry representative bodies - recently recognised the need to reduce the erosion of member account balances through group life insurance.
ISWG chairman Jim Minto said too many people have multiple superannuation accounts and while insurance benefits are valuable to members, there is more rapid erosion of retirement savings if a person has too many insurance benefits.
It is hoped that the adoption of the recent guidance note will result in more accurate and fair pricing, improve industry sustainability and increase regulator confidence in the industry.
FSC CEO Sally Loane added the new guidance note is "proof that industry bodies are continuing to work to improve consumer outcomes and industry sustainability."