As an industry, we have taken significant strides in the sense that we no longer have to prove the digital case. There’s no need to cite growing trends about the power of digital technology and the take-up it will enable because we are all experiencing the benefits every day.
It’s generally accepted that digital thinking needs to be at the heart of every product and service we provide, to meet every customer need and provide an exceptional customer service and experience in today’s economy.
Those organisations who separate their business strategy from their digital strategy will miss out on the most critical opportunity we can harness today: creating valuable moments for our customers.
Those organisations who create modular digital solutions versus end to end integrated solutions will be unable to drive value from the sum of their parts.
In the Group Insurance sector, I think there are some real benefits we can deliver to members by transforming the way insurance providers partner with their superannuation fund clients and shape the collective offer.
The first is engagement. It’s a given that superannuation funds are intently focused on how they engage with their members and create ongoing engaging experiences that help members to fulfil their insurance needs.
The partnership model of Group Insurance is a critical component of this strategy because, from the average member’s perspective, there is very little distinction between who is managing their superannuation account and who is providing the insurance protection.
As the insurance provider, we need to enhance the members’ experience via digital tools that, in turn, enhance the superannuation fund’s engagement strategy. This helps to build brand value and create longevity in the relationship. More than that, it helps to ensure an alignment in goals.
The second is recognising that members and consumers want options. They don’t want to be dictated to about how they should interact with an organisation, but want greater control.
Digital is a critical component of that choice and, from an insurance perspective, we need to give superannuation funds and their members options across the spectrum including tele-claims, tele-underwriting and digital channels while still offering a paper based approach. The subtlety of providing choice cannot be underestimated as it is now the customer’s expectation and no longer an item that can just be considered a “value-add”.
The power of analytics enables the generation of insight which gives everyone involved the ability to better understand and predict member needs and behaviour and support the development of tailored products and services for our superannuation fund partners. Investing in data analytics capability and resources can drive the customisation of services, programs and solutions for superannuation funds. This alone can help funds greatly to engage members, employers and stakeholders and enhance their experience. An investment in the two D’s – digital and data analytics, will no doubt act as the enablers of the great transition towards greater customisation for members and consumers.
So while nearly every organisation is “talking” digital and data analytics, the greatest impact will come from that organisation’s ability to leverage their strength and scale to invest and build fully integrated end-to-end solutions.
As an example, CommInsure has built the prototype for on-line claims notification and lodgement with our technology partners and tested it with members using Commonwealth Bank’s leading design thinking principles and capability. We’re now working with our technology partners to integrate this prototype with the claims management system and build gateways with superannuation fund administrators.
The value for superannuation funds and administrators from this type of investment in digital capability is enormous. The most obvious is the enhancement of the member’s overall experience. The other is the analytics and reporting it can provide. As well as giving the fund greater ability to measure point in time cycle times, it can also provide real-time insight into their cohort’s needs, attitudes and experience by identifying leading indicators, trends and developments.
We’re all after the same goal: best in class solutions that engage fund members by ensuring member-centricity is at the heart of the strategy. We all want to achieve this goal by meeting the critical factor of choice.
Do these two things right and the myriad benefits that greater digital enablement can bring is enormous. An enhanced end to end experience, process efficiencies, less touchpoints, less duplication, faster turn-around cycle times, improved productivity for the fund, the administrator and the insurer – every one of which drives value for the member.
By Robert Nunez, Head of Industry Fund Segment, CommInsure
This article was prepared by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA) which is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. The information is of a general nature only and should not be regarded as advice, financial or otherwise. CommInsure is a registered business name of CMLA.