The Australian Prudential Regulation Authority (APRA) has commenced a second round of consultation on revisions to Prudential Standard SPS 250 Insurance in Superannuation.
APRA said the proposed changes were aimed at improving superannuation member outcomes by helping trustees select the most appropriate insurance policies for their members, and monitor their ongoing relationships with insurers.
“The key changes to the standard address two recommendations from the financial services Royal Commission, and reflect Government recommendations that trustees make it easier for members to opt-out of insurance, and ensure that premiums don’t inappropriately erode members’ retirement income,” APRA said.
It said it began consulting on proposed updates to SPS 250 in November 2019.
“Although feedback from industry was broadly positive, a number of submissions sought further information about aspects of APRA’s proposed changes,” it said.
APRA said the new draft prudential standard had been released in response to feedback and incorporated revised wording aimed at clarifying some of the revised requirements of SPS 250.
The Authority said it had also released for consultation an updated version of Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250), which contained further guidance on the new proposed requirements.
It said submissions on both the SPS 250 and the accompanying prudential practice guide were open until 5 March.
APRA’s updated draft SPS 250 and letter outlining the consultation can be accessed at this PS News link.
