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Super funds are falling short on member comms, study finds
With member confidence constantly tested amid market volatility, super funds are struggling to provide clear, timely, and empathetic member communication – an area that’s coming under increasing regulatory scrutiny.
This is according to a new white paper from Borromean Consulting, which reviewed the public-facing communications of some 25 super and pension providers across Australia, the UK, the US, Canada and Europe.
“The release follows recent market volatility and the dramatic headlines in mainstream press which creates anxiety for many Australians,” the firm pointed out.
Locally, it also comes as the Australian government and regulators are seeking to improve member servicing and communications, not just in terms of operational responsiveness, but in building greater member confidence in super.
“Members aren’t reading ASX charts or product disclosure statements during volatility — they’re reading headlines,” said Duncan McPherson, principal of Borromean Consulting.
“What they need from their fund in those moments is clear reassurance, not buried PDFs or compliance-driven messaging.”
The white paper, among other things, examined whether communications are easy to find when anxiety is high, if messages are framed in “plain English”, whether different member needs are being considered, and to what extent advisers, calculators and educational tools are being used to help members stay on track.
While some funds led the way in these areas - via the likes of using homepage banners, adviser videos and simplified messaging - the consulting firm said that others opted to provide more complex investment updates or content members may find inaccessible.
“Communicaton has moved from a marketing function to a trust function," McPherson added. “And in volatile periods, trust is the most valuable asset a fund can hold.”
Earlier this year the government announced that it would introduce mandatory and enforceable service standards for funds, with industry bodies recognising that consumer expectations of service standards have not always been met.
The standards are set to initially target three critical areas where complaints data shows the greatest need for improvement, including the area of death benefit claims, insurance claims, and member communication.
While the reform aligns with the objective of super, then financial services minister Stephen Jones said it also complements the government’s retirement phase of super reforms and the Delivering Better Financial Outcomes package.
At the time, the CEO of the Super Members Council (SMC) said mandatory service standards will ensure millions of Australians get the service they deserve.
“Super funds have tens of millions of interactions with their members every year, and members expect those interactions to be timely, responsive and clear,” Misha Schubert said.
“We look forward to working with the government to ensure the new mandatory standards improve the experience when members are dealing with their fund – often on complex and challenging issues.”
AUTHOR
Jessica Penny
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