HESTA renews insurance partnership with AIA, drops fees

Australian superannuation fund, HESTA, has lowered the fees for its members’ insurance cover after renewing its partnership with AIA Australia.

This is the latest in a string of re-appointments for AIA, after first linking up with HESTA in 2018 and its latest partnership renewal coming into effect in 2023.

According to a statement from HESTA, more than $186 million was paid out in insurance benefits to HESTA members in 2024.

“We’re pleased to continue our strong relationship with AIA Australia, which will support us in providing high-quality, long-term insurance protection at better value for our members,” HESTA chief executive, Debby Blakey, said.

“As a fund focused on healthcare and community services, ensuring simple access to appropriate and affordable insurance coverage is critical and can provide peace of mind to members and their families.

“It’s a great outcome for our more than one million members that we’ll be able to help cut insurance costs for them at a time when many Australians are experiencing higher prices.”

HESTA also said the decision to re-appoint AIA Australia as its insurance partner followed a tender process that commenced in December 2024. The fund said ahead of the new agreement coming into effect next year, it will work closely with AIA to finalise “pricing, product design, and [improved] terms and conditions” for members.

“We look forward to working closely with AIA to further enhance our insurance offering and deliver even better outcomes for our members in the years ahead,” Blakey said.

“We also want to recognise the high-quality proposals received from a range of insurers as part of our tender process, and would like to thank them for their strong interest and their time and effort in submitting very competitive proposals.”