Reimagining life insurance – the importance of member engagement

Getting superannuation fund members to engage with their life insurance inside superannuation will require us all to think outside the box. At AIA, we believe more needs to be done to engage with customers: we need to reimagine life insurance.

Research has found while only about 30% of Australians are aware they do have life insurance within superannuation, once aware, more than 70% see its inclusion as a real positive. Without default cover inside superannuation, almost 50% would not have life insurance at all.

The industry must improve the general understanding of life insurance: We need to simplify our products and streamline communication. Members need to understand whether the insurance they have is right for them, and know what their options are to change their cover.  We also need to engage more with members from the outset and with greater empathy at claim time when they most need our support. To solve this problem we need to think differently and engage members in a new way.

Changing the role of insurers to focus more on encouraging healthy living is an effective pathway to building awareness, while at the same time engage with members through their health journey. We need an integrated solution that helps members to be well, get well and protect their financial future.

From AIA’s experience, what we know is that customers do engage in their health and wellbeing. With our health and wellbeing program AIA Vitality, the number of customer touch points has increased from at best three to more than 20 per month: Members are rewarded for improving their health, and we know that by encouraging positive behavioural change, customer retention improves and claims reduce. Most importantly, we are helping people to live longer, healthier, happier lives. And we have an ongoing positive conversation rather than just being in touch at times of crisis. This is a paradigm shift in the way we think about life insurance and look after our members.

Reimagining life insurance also means changing the conversation during claims time: instead of just paying the claim and walking away, AIA is engaging clients by helping them to rehabilitate and return to work. Early intervention is key: If a person is off work for 20 days, they have a 70% chance of returning to work. After 70 days, the chance of returning to work reduces to only 35%.

Life insurers have the opportunity to make a difference in people’s lives, not only at critical times but every single day. We can do this by expanding the conversation with our members to include life, health and wellness. By bringing together this proposition for our customers, we can continue to develop integrated product and service solutions to help improve their lives. We can reimagine life insurance.

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