Industry – What a year it’s been for the financial services industry!
The Hayne Royal Commission examined industry misconduct in excruciating detail. Case studies exposed deep flaws in processes, systems, governance, risk management, and ultimately people and accountability. Consumers trust in the system took a severe blow.
Superannuation had its most challenging year in a very long time, and those challenges remain. The debate on erosion of member superannuation account balances through high fees and default insurance premiums for young people waged all year – reflecting the Insurance Code issue, Budget and Productivity Commission reports. On the plus side, strong member investment returns for the year to 30 June, helped the superannuation industry to grow to $2.8 trillion by 30 September. APRA proposed measures to strengthen superannuation member outcomes.
The fightback to highlight the benefits of the current Super system and having its long term aim as members achieving dignified, comfortable retirement which needs to be well integrated with the Aged Pension, health care and aged care on a sound and fair intergenerational fiscal basis is underway.
In January, we added Neekhil Shah to our core team. Neekhil has 15 years’ experience as an actuary specialising in superannuation and wealth management.
In May, we partnered with Mercer with Sean as the Appointed Actuary to several Friendly Societies, reflecting Sean’s deep and wide life insurance, risk management and investment experience.
Our client work addressed the 2018 industry issues with discussions and advice addressing business and operational challenges, with modelling and calculation support if and where appropriate.