NGS Super says it appointed TAL following a limited tender for its insurance offering. The move comes as the fund’s longtime partnership with CommInsure reaches an end.
“We have enjoyed a strong relationship with CommInsure over a long period of time, and acknowledge the enormous contribution they have made to the fund and its members,” NGS Super chief executive Anthony Rodwell-Ball said in a statement issued late last week.
This is second fund in recent times to move on from CommInsure. In August, ifa reported that CareSuper will partner with MetLife once its existing contract with CommInsure expires at the end of this year.
NGS Super was one of nine CommInsure group insurance clients contacted by InvestorDaily in March in the wake of allegations of unethical claims handling by Fairfax Media and the ABC’s Four Corners.
NGS Super executive manager of customer Dascia Bennett told InvestorDaily at the time it was a “massive concern … where you see behaviour that doesn’t meet the ethical standards and the philosophy of putting the member first”.
Last week, Ms Bennett confirmed to InvestorDaily that no NGS Super members were involved in the claims handling incidents raised by the ABC and Fairfax.
She said there was “no connection” between the allegations against CommInsure and NGS Super’s decision to switch to TAL.
NGS Super said its criteria for selecting an insurance partner included affordability for members, end to end services across underwriting and claims, innovation and technology strength, and cultural alignment and governance practices.
Mr Rodwell-Ball said the move to appoint TAL was part of a “wider strategic plan” to strengthen its insurance offering.
“Our goal is always to help members secure their financial futures. Insurance solutions play a significant role in achieving this,” he said.
“We believe that TAL, as one of Australia’s largest life insurers, has the expertise and capabilities to help us achieve this goal.
“We see a natural alignment with TAL to support our focus on digital and access channels for our members that ensures that we are delivering the best member experience possible.”
CommInsure still has the old school business model of expensive state managers in every state that basically don’t really provide any benefit to the company at all but it all sounds good in weekly meetings. This is adding enormous cost to their business that is like a giant titanic with a tiny rudder unable to steer out of the obvious threat to the business model. Every state could easily be run by a head office national manager and it would not drop one bit of productivity yet save them millions of dollars a year plus. They would simply need just two or three bdm’s in each state who no longer need an office or car bay. Everything could be done remotely, meetings, paperwork the lot. But no, CommInsure will keep the big fat lazy dinosaur alive and wear these hits over and over.