MetLife's Brian Jacobs, Senior Manager, Member Engagement, Customer and Marketing, reveals how super funds can help young members engage with their insurance options and make an informed decision as part of the Putting Members’ Interests First (PMIF) change.

MetLife research confirms what most of us know about how Gen Z feels about insurance and super: they're focused on today, not what might happen in 10 or 20 years. They have lower levels of trust in financial institutions, but have a sense of trust that government has done the right thing with superannuation and insurance. And therefore, removing insurance if you haven’t reached $6,000 in super must be a ‘good thing’. So how do you connect with them when there is historically low engagement?

1. Value frame their current cover

Explain what cover the member has today and what it can provide in the future if the unexpected occurs. Our research shows a significantly high percentage of young members don't know they have the cover. Raising awareness can be as simple as saying, "Did you know you have $150,000 of death and TPD cover?"

2. Grab their attention with email subject lines

This generation only opens two in every 10 super fund emails, so you need to make it personal and clever.

3. Don't be too casual

Be informative. Empower them by emphasising they're in control. The government might have decided on their behalf to introduce a generic solution, but members need to be reminded they have ultimate control over what cover they want.

4. Young members rely on technology to be reminded

They receive digital reminders for everything – e.g. medical appointments, deliveries, restaurant bookings - so put systems in place via multiple channels to send regular updates or triggers via email, SMS or a combination. For example, "Did you know you've only got two weeks before your insurance is cancelled? Would you like to keep it or let it lapse? And do you understand the benefits of both options? " Reminders are now expected.

5. Don't underestimate the power of the call centre

People often read the information and make a decision but then contact the call centre to make sure they're doing the right thing. Don't make this a difficult process. Open up the call centre as a channel of choice rather than just directing people online.

6. Present a balanced view

Be honest about the fact that opting in to keep their insurance costs money and does reduce their superannuation balance.

"It's important for this cohort to know why they may want to keep their insurance," Brian says. "If they cancel because they don't see the value, that's fine. It's not our objective to convince them to opt in. The objective is to increase the number of young members making an informed decision."

To find out why Under 25s decided to keep or let their insurance inside super lapse visit Putting Members' Interests First