Protecting Your Super - but what about your life?

Insuring the financial security of millions of Australians is something that should be considered a privilege, not a right. Regulatory change could come at any moment; as an industry, we need to do more now to increase member engagement, enhance education and demonstrate the shared value in group life insurance. Our industry should act now to address the following considerations:

• Digital technology to raise awareness – From simple text messaging, to technology that gives a member better access to underwriting and enables them to change their cover easily. Which methods of communication would your members engage with most?
• Better use of data to tailor benefit designs – Is the same benefit design for all ages still suitable? Does an age-based scale really provide enough tailoring? Is age the only proxy to determine insurance needs?
• Acknowledge members who never claim – What value can you add for members who have paid premiums over a long period of time but never made a claim? 
• Simplify products and terms – How can we provide the right level of flexibility in the product while making products easier for members to understand? How can a member appreciate the value of a product if they can’t first understand the terms? Can the product terms even be administered?
• Support a member through their life, not just their current job – In an era that promotes a fund for life (with the potential of a default fund ‘stapled’ to a member or a ‘best in show list’), how can insurance adapt to the key moments in a members’ life – mortgage, marriage, babies, work – through to retirement?

As an industry, we are still facing the prospect of a large number of members who are young, and/or still accumulating their account balance, being unable to access automatic default insurance. The proportion of members opting in for insurance cover in these circumstances is expected to be small, which means many Australians and their families could be exposed to a lack of financial security in the event that they become sick or injured. If we truly want to fill the insurance gap that might arise in the future, we must work now at highlighting to our members the value of group insurance. 

For any additional information, please contact your Client Development Manager or Strategic Partnership Manager.