Total Care Super Plan

TCPS has an outsourced administration arrangement with AIA Australia Limited. Member services, which include claims processing, call centre, communications, website services and complaints handling are managed by AIA. CFS monitors the effectiveness of the administrative services via periodic reviews against agreed Service Level Standards. The standards relating to contact centre, claims handling, administration timeframes and complaint handling were all substantively met. 

To evaluate the appropriateness of the insurance strategy for TCPS, we used AIL’s Annual Insurance Review 2023, which included benchmarking conducted by an independent research house. The insurance settings and Terms & Conditions of TCPS’s insurance were benchmarked against comparable insurance products and found to be appropriate and comparable. The report concluded that overall the TCPS insurance offer is providing value for money and appropriately supports the wealth protection needs of the members.  

It is estimated that, relative to industry peers, 52.5% members are paying insurance premiums that were ‘at median or better’. As a result, we formed the view that insurance premiums are competitive relative to similar products for the majority of members. 

Scale is important as it allows AIL to meet its commitments and negotiate competitive arrangements for members. As of 30 June 2023, based on APRA’s Annual fund-level superannuation statistics, AIL was the 7th largest provider of superannuation in Australia with total super assets of approximately $110 billion and a membership of approximately 821k members. 

The administration of this product is carried out by AIA and the administration cost is covered within the insurance premium charged to the members. The administration cost was assessed to be sufficient to cover the small operating expenses incurred in relation to this product. 

Dividend payments that were paid to the parent companies were made in accordance with AIL’s Capital and Dividend Policy, which requires that the amount and timing of any dividend is consistent with AIL’ fiduciary duties and members’ best financial interests.