Insurance changes from switching to TAL

We’ve reviewed the insurance arrangements that are provided by the current insurer, with a range of other insurers to make sure the insurance terms and prices are competitive. After thoroughly comparing the proposals that were submitted by 6 insurers, the Trustee decided to select TAL Life Limited (TAL) as the new default insurer for the AMP Super Fund as it believes TAL can offer our members and employers the best outcomes.

The Trustee selected TAL as the default insurer after they completed a comprehensive market tender and reviewed the proposals made by 6 insurers. The Trustee selected TAL because it believes this is in the best interests of members. For many members, the switch to TAL will include changing how the amount of their insurance is calculated as it will now reduce as they get closer to retirement when they usually don’t need as much cover. Overall, the Trustee believes the insurance cover offered by TAL is both appropriate and sustainable.

The Trustee selected TAL as most members will be provided with insurance on competitive terms and lower premium rates so their super balances are less likely to be impacted by higher levels of erosion. Also, both members and employers will benefit from TAL’s innovative digital services, online claims processes and other programs.

If you have insurance on 31 March 2024, we’ll switch your insurance to TAL on 1 April 2024.  Any ongoing claims will continue, uninterrupted, with the current insurer.

In most cases the types of insurance cover you hold will remain the same. If there are changes, these will be set out in the letter we sent you during January or February 2024. Look at the section ‘Your insurance cover’ to see your estimated new cover amount, charges and other details.

No.  The trustee believes that changing the insurer is in the best interest of members and we won’t be able to offer your current insurance arrangements from 1 April 2024.

If you are currently being assessed for, or you have an open claim, the information in your letter you received in January or February outlines what happens with your insurance. We’ll also provide more information to you during the claims process.

You can increase, decrease or cancel your insurance at any time, there’s no need to wait. We’ll simply transfer whatever remaining insurance you hold, to TAL on 1 April 2024.

Over the past few years, the Trustee has been steadily simplifying its Superannuation Product offer to deliver competitive and streamlined admin fees. From 1 April 2024 we’ll deliver further pricing reductions through reduced premiums with our new partner, TAL. This change in insurer will see an overall average reduction of 31% in premiums.

The cost to administer insurance is significant and remains the same going forward, so the Insurance Service Expense (ISE) will replace the Insurance Service Fee (ISF) to continue to recover these costs. The ISE is charged at up to 11.5% of the total monthly insurance premiums (excluding any stamp duty) and is capped at $30 per month or ($360 each year).

When the Trustee makes changes to the product, they act on members’ behalf by forming the view of what is in the best financial interest of members in the fund. 

The Trustee Board of Directors manage the AMP Super Fund. They make sure the fund is properly administered, complies with relevant legislation, and is run in members' best financial interest. To oversee the AMP Super Fund, the Trustee incurs mandatory fees like regulatory levies and audit fees. The new Trustee Fee will cover these costs (other super funds also charge a similar fee). 

The letter we sent you in January/February 2024, includes an ‘additional information’ section that provides details about the changes to your insurance cover, charges and terms and conditions.