Industry responses and options for recalibration
In response to these shifts, some employers are implementing or expanding employer‑sponsored life and income protection arrangements, including salary continuance insurance, as part of their workforce risk strategies. This changes how protection is distributed between compulsory super, workplace programs, and individual policies. ASFA’s research outlines several options for adjusting default insurance settings. Recommendations include extending opt‑out default cover to all members aged 21 and over rather than 25, providing default cover to new full‑time employees from commencement of employment instead of after a $6,000 balance has accumulated, and replacing automatic cancellation on inactive accounts with an enhanced opt‑out process requiring an explicit member decision. These proposals, discussed at ASFA’s Spotlight on Insurance forum in Sydney, are expected to inform continuing discussions among funds, insurers, regulators, and employers on balancing premium erosion controls with access to life and disability cover for working Australians.