Superannuation funds need to think of new ways to engage members in their insurance policies to ensure they have enough cover, particularly as the proposed Stronger Super reforms draw closer.
Damien Green, chief executive of AIA Australia, said funds first needed to think about what the minimum safety net should be for their members.
They must then come up with a plan to encourage their members to actively think about their insurance needs, and whether or not the minimum cover will be enough.
But while engaging members may seem like an impossible task, he said it was not as difficult as first thought.
“Propensity among members to engage with their insurance through their fund is higher than many assume,” Green said.
Without promotion, Green said AIA's life insurance online quoting tool had a better take up than expected.
He said by providing members with simple and accessible online tools and applications, more members could be reached.
He also suggested marketing and access to advice as being two key areas to promote member engagement with insurance.
Chief operating officer at Rest Superannuation, Paul Sayer, agreed that simplification is the key to engagement.
“Make things simple and people will become more engaged,” he said.
