AIA has introduced a tool that aims to streamline insurance administration for financial advisers moving clients’ super into a platform account.

The insurance short form underwriting initiative enables advisers to transfer eligible clients’ group cover levels by completing a four-question personal statement.

The current practice maintains the client’s insurance but results in multiple super accounts and associated fees eroding balances.

“AIA’s innovation has been designed to overcome barriers faced by financial advisers and clients whereby multiple super accounts are often retained in order to preserve insurance cover,” the insurer said.

“In most cases, when an adviser is transferring a client’s superannuation into a new wrap platform structure, they retain a nominal balance in the former fund to preserve default group insurance cover.”

AIA chief retail distribution and advice officer Pina Sciarrone added: “We are privileged to work closely with the financial advice industry and are excited that this new initiative will simplify the transfer process and associated administration between group and retail insurance – allowing advisers to focus on reviewing options that will deliver the desired impact for their clients.”