After losing a number of key group insurance contracts at the end of 2016, Commonwealth Bank of Australia has inked a deal to be the insurance provider for a multi-industry profit-for-members superannuation fund.
The 43,000 member Nationwide Superannuation Fund has awarded CommInsure the contract, worth more than $8.5 million and beginning on July 1, after what it says was a competitive tender process.
MetLife has been NSF's group insurer since 2012.
The CEO of NSF Super Ian Morante said that the fund, which is worth $530 million, was impressed with CommInsure's initiatives to encourage members to digitally interact with their fund, including online claims lodgement and underwriting capabilities, and a health and wellbeing program.
"Among the benefits to be provided to members will be enhanced digital and online functionality to meet their insurance needs. Appointing CommInsure fits well with the increased focus the fund has on digital and electronic interaction with members and employers," he said.
This deal is good news for CommInsure after it lost a number of key contracts in the wake of criticism about its claims process last year.
As foreshadowed by The Australian Financial Review in November, then $4.3 billion TWUSUPER scheme ended a long-term relationship with CommInsure and awarded what is understood to be an around $50 million contract to its rival TAL at the beginning of December.
At the time TWUSuper chief executive Frank Sandy said the fund had "enjoyed a positive relationship" with CommInsure.
"Changing service providers is never an easy decision to make, however the services TAL offered in supporting the TWUSuper members and assisting the fund to achieve its objectives were appealing and compelling. The change will deliver premium savings to members," he said.
In September $5 billion NGS Super did not renew its $50 million CommInsure contract and also switched it to TAL after 28 years with the CBA. One month earlier, Melbourne-based CareSuper switched its insurance provider from CommInsure to MetLife. The value of that contract was about $100 million.
Last year CommInsure, which had at the time $1.8 billion of in-force premiums, said it was disheartening to lose mandates, but insisted the insurer was working hard to win new contracts.
"Industry fund tenders are competitive, and while we are disappointed to lose clients from time to time, we are also committed to working very hard to earn new mandates. We are proud of our strong position in the market and continue to invest in delivering our market-leading digital capabilities," Helen Troup, managing director of CommInsure said at the time.
The life insurance industry has been under fire with the federal government urging the sector to implement as "much change as possible" without legislation.
Craig Harrison, general manager, life product and distribution, CommInsure said the insurer was committed to providing excellent products and services.
"Our tailored product, claims and service offering for NSF Super members is underpinned by ongoing investment in our digital capability. We look forward to working with NSF Super to deliver long-term value to their members," he said.
