These 5 insights will help you connect more effectively.
With Protecting Your Super and now Protecting Members’ Interests First, communicating insurance has been big for super funds in 2019. If you work in the super industry and find it challenging, you’re not alone. In a live poll at the 2019 August Group Insurance Summit, 44% rated communications above pricing, claims handling and services as their greatest challenge.
Here are 5 insights that will help you connect with your members more effectively.
1. Focus on what matters to members
Different demographics have different concerns. For younger members, insuring their ability to earn a living is likely to resonate more. Older members with financial commitments and a family have more to protect but may be struggling to work out how much and what kind of cover they need.
A 2017 MetLife survey of 1,500 working Australians found three key benefits had the greatest appeal to members:
• the tax advantages of premiums being paid from super
• lower costs resulting from bulk purchases of policies
• automatic acceptance without the need for a health check.
Yet these same benefits have low levels of awareness. The same survey found 56 percent were not aware of the tax benefits and 61 percent were not aware that insurance is bulk purchased as a group life policy. Some 52 percent were not aware that many super funds automatically accept people for insurance cover without requiring a health check.
You can instantly improve your communications by focusing on what matters to members – not what you think they should know or care about.
2. Dispel myths and misinformation
If you’re working in super you probably won’t be surprised by MetLife’s 2019 PMIF research finding that many younger members don’t know they have insurance in their super, let alone what type or how much they’re covered for. This reinforces the need to repeat the basics to generate awareness.
What may really surprise you, though, is that most think life insurers pay around 50 percent of claims when in fact APRA and ASIC statistics show 92 percent of finalised claims on insurance through super were paid in 2017.
Basic education around what cover is provided, what it’s good for, your fund’s claims payment history and how to make a claim can help bust myths and build trust. So too can using member stories to bring dry information to life and make it meaningful.
3. Show value for money
The same PMIF Metlife research indicates that if you ask members to estimate their cover and the cost, they’ll get it wildly wrong. Most grossly underestimate how much they’re insured for and over-estimate the fees. So give them the facts: what cover they have versus what they pay. Don’t rely on them getting details of their cover amounts and fees off an annual or twice yearly benefit statement – instead incorporate that information whenever it’s relevant. Even better, make it something they can relate to – for example, insurance cover for “the cost of a couple of cups of coffee”.
4. Use personalised content + multiple channels
Digital and data make it easier than ever to serve up content that’s tailored to your audience. Use those data insights to decide how best to segment your membership to make your messages relevant and reduce complexity.
Ways to segment include age, type of cover (default vs tailored), life stage, how long they’ve been with the fund and more. Personalised content makes it easier to simplify your message whereas a ‘one size fits all approach’ leaves you having to incorporate content for all kinds of cover variations. Anything that simplifies your message will improve understanding.
Providing information in more than one channel allows people to access information in a way that suits them and helps to build product literacy. Everything from your regular benefit statements to text messaging, emails, letters, your website and outbound calls can carry content about insurance. All those communications can include a call to action about contacting the fund for help deciding on the right level of cover, with reassurance the fund is there for them. MetLife research indicates 7 out of 10 members believe it’s the role of their super fund to assist them with insurance cover – don’t let them down.
5. Deliver the right message at the right time
Life changes such as getting married, having a baby, changing jobs or buying a house are all triggers for getting or increasing insurance cover. Big changes like this are opportunities for engaging members around their insurance cover. The challenge for super funds is to identify these trigger times. This is where data analytics comes in, based on indicators such as change of name, address change or beneficiaries being updated. Smart use of your member data and the insights it provides can lead to better outcomes – for your members and the fund.
We hope you find these insights helpful. If you’d like to find out more about how Transform Communications can help with your insurance communications contact our CEO and Director, Chris Dvoracek.