From financialnewswire.com.au: Insurance coverage rates within Australian superannuation have dropped to 50%, according to Mercer research, revealing significant challenges due to government policy changes like Protecting Your Super and Putting Members’ Interests First.

Despite superannuation funds paying out $7 billion in insurance benefits, the market is facing difficulties with fewer providers and a consolidation that limits competition.

The report predicts a divergence in how funds treat insurance, with some viewing it as a compliance feature and others as a competitive differentiator.