LGsuper has appointed OnePath Life as its group insurer, effective from 1 July.
"The group risk market is expanding very, very fast," OnePath acting general manager for insurance Robin Knight told InvestorDaily.
"What is great about LGsuper is they are very partnership-based people.
"We have been the insurer of City Super, which is the insurer of Brisbane City Council, and we have a really good relationship with them. LGsuper had a strong relationship with AIA, who has been their insurer. They've obviously looked at both insurers and probably been very happy with all parties, so that's really exactly the client we would love to deal with going forwards.
"A lot of the industry funds probably do have some consolidation ahead of them. It's very much a partnership-type world. You like these long-term sustainable relationships.
"We would certainly have discussions with our existing clients. They wouldn't share with us exactly who they are talking to, but it wouldn't surprise us if there are further mergers."
The appointment follows a tender process in late 2011, which LGsuper announced after it merged with City Super in July 2011.
OnePath had been the group insurer for City Super from July 2007, providing insurance benefits for employees of Brisbane City Council and their associated employers.
"We have been building a strong relationship with LGsuper and since the City Super merger our team has worked hard to expand the existing partnership. This appointment reflects the alignment between our group insurance strategy and LGsuper's business definition of value," Knight said.
"We look forward to expanding our business to continue the delivery of expert, competitive solutions to LGsuper's members and its trustee."
LGsuper chief executive David Todd said: "Following the LGsuper and City Super merger, LGsuper has been working towards consolidating its legacy insurance arrangements with one group insurer from 1 July 2012, with a view to improving its insurance offering."
