MetLife calls for greater industry collaboration to drive member engagement with insurance inside super following launch of new research
Sydney September 02, 2019
Life insurer MetLife Australia called for superannuation funds and life insurers to work together to increase Australian’s awareness of the insurance cover they have through their superannuation fund, following the release of a new report.
The annual MetLife Insurance Inside Super report looks at the awareness, attitudes and engagement of Australian’s with insurance inside their superannuation. Despite the recent media spotlight on the financial services and superannuation industry, there has been little change in the number of Australians that are aware they have access to Life, Total & Permanent Disability (TPD) and Income Protection (IP) cover through super.
But awareness is only half the battle so this year’s research sought to better understand how fund members engage with their super and what drives them to modify their insurance cover. Findings from the research revealed super funds have a critical role to play in driving awareness of Insurance Inside Super options and empowering members to make decisions about their cover with confidence.
Notably, ‘communication from a members’ superfund’ was found to be the main driver of initial awareness of insurance inside super, with email the preferred method of communication.
Beyond initial awareness, the findings suggests a greater focus is needed on educating members about the importance of modifying their insurance, with 39% of members unaware they could modify the level of cover they had inside super.
Understanding members’ barriers to engaging with insurance is critical for super funds, with the report revealing, those members that engage with and modify insurance inside super, are more likely to engage with and check their super more often, remain with their super fund for longer, percieve their super fund to rate better than others on attributes such as investment returns, fees and charges, customer service and communications, with a higher proportion to recommend their super fund.
One of the biggest barriers preventing engagement is concern about their insurance paying out at claim time, with the majority citing distrust and industry reputation as a significant deterrent. In view of this, MetLife has called for increased transparency and collaboration across the industry, to get more Australians engaging with, and modifying, their insurance.
To facilitate this, Metlife has today launched ‘Inside Update’, which provides super fund partners and their members with a suite of best-practice tools and information designed to empower Australians to make informed decisions about their cover.
The ‘Inside Update’ is an important step toward increased transparency around insurance inside super. As members become more aware of the benefits of insurance inside super and how they can control their cover, it is expected that trust in insurance providers and super fund loyalty will strengthen.
Chesne Stafford, Chief Customer and Marketing Officer, MetLife Australia said:
“Misinformation around insurance inside super and the value it provides has been widespread in recent months, particularly as the Protect Your Super Changes come into force. With thousands of Australians with inactive and low balance accounts now having their insurance switched off and the potential for more people to be affected, it is more important than ever to increase awareness and get people checking what level of protection they have and need. Whilst some of the opt-in rates are encouraging there is still significant work to do.
“We know insurance inside super is built-in protection that serves an incredibly important purpose and has been a safety net for many Australians when the unexpected occurs. Everyday we see examples of people who rely on their insurance inside super to help pick up the pieces after major illness or accident, or bereavement.
“We need to ensure that protection continues and people aren’t caught unexpectedly without cover, so we’re committed to working with the industry to increase and simplify communication about insurance inside super. We want to help Australians understand that it exists, why it exists and to be confident to make choices about their cover.”
Read the Insurance Inside Super 2019 Report
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