Prudential Standard SPS 250 Insurance in Superannuation
This page contains information on APRA's consultation on Prudential Standard SPS 250 Insurance in Superannuation (SPS 250).
On 12 November 2021, APRA released its final revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250). This is accompanied by a response to submissions paper, which notes the key revisions following industry consultations, in November 2019 and January 2021.
The final revisions are aimed at ensuring better member outcomes through updated requirements for trustees to select, manage and monitor members’ insurance arrangements.
The response paper, final and marked up versions of SPS 250 and SPG 250, and non-confidential submissions are available below:
Prudential Practice Guide
On 21 September 2021, APRA released a letter to industry on an update to its proposed revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250).
On 20 January 2021, APRA released for consultation a revised draft Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and a draft Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250).
The key proposed changes to the standard address two recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, regarding independent certification of related party insurance arrangements and priority and privilege arrangements, and that the rules for status attribution for a beneficiary are fair and reasonable. Additional proposed changes reflect recommendations by Government for trustees to facilitate easy opt-out of insurance by superannuation members, and to ensure that premiums don’t inappropriately erode members’ retirement income.
APRA is re-consulting on draft SPS 250, following queries raised and guidance sought in response to the November 2019 consultation. Draft SPS 250 has been updated in response to feedback and draft SPG 250 provides guidance on the new proposed requirements.
The revised draft SPS 250 is planned to commence on 1 January 2022.
Submissions on this consultation will be received until 5 March 2021. APRA intends to finalise the revised SPS 250 and SPG 250 in mid-2021.
The consultation letter, clean and marked-up versions of the draft prudential standard, and a marked-up version of the draft prudential practice guide, can be found below:
Prudential Practice Guide
The following submissions were received in response to the November 2019 consultation:
On 25 November 2019, APRA released for consultation its proposed revisions to SPS 250, which are aimed at improving superannuation member outcomes by helping trustees select the most appropriate policies for their members, and monitor their ongoing relationships with insurers.
The proposed revisions also implement recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Submissions on this consultation will be received until 3 February 2020.
The consultation letter and the clean and marked-up versions of the draft prudential standard can be found below:
Note on submissions
It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.