How can data be used to benefit funds and engage members?

The role of data is becoming increasingly important in all aspects of superannuation – from helping funds provide members with the most appropriate and cost effective products and services, to assisting with meeting regulatory obligations.

Perhaps the most important role data plays is to understand and engage with members. Let’s look at the ways data can be used to improve a funds product and service offering:

1. Gain a deeper understanding of member needs

By capturing membership information such as age, gender, insurance cover levels, salary, superannuation contribution and geographical distribution; trustees can develop a deeper understanding of the profile, needs and behaviours of their members. These insights can be used in many ways – for example, with group insurance, they indicate whether the offered types and cover levels are the most appropriate and cost effective to meet member needs.

2. Identify and manage risk, and in turn the cost of group insurance

The more accurate, comprehensive and timely data is; the more accurate pricing outcomes tend to be for funds. When it comes to insurance, good quality data helps to identify and manage risk factors. Without it, insurers need to make assumptions around the membership and claims experience profile of the fund. If assumptions are used to determine fund profiles, they’re likely to be more conservative and can result in insurance being more expensive for the member. Good quality data therefore reduces the need for conservative assumptions in group insurance and makes it easier to price appropriately for the fund and its members.

3. The right levels of support

As well as helping to determine the most appropriate products for members; accurate data helps trustees to identify trends and shape and tailor relevant support services. At CommInsure, we receive a large proportion of claims with a mental illness component, so we have chosen to invest heavily in building our rehabilitation capability in this area. In this case, data presents an opportunity for funds and insurers to work together, to ensure that members get the most relevant claims management support, at a time when they need it most.

4. Using data to help meet regulatory obligations

New requirements relating to the insurance management framework (as outlined in SPS 250 and SRF 250) means funds need to regularly report on their member’s claims and underwriting experience by providing accurate, complete and timely data. This is to support any subsequent review, tender or transition process; and to assist, we have delivered an online and interactive tool called CommInsureIntelHub. This provides funds with downloadable, interactive reports of auditable quality that:

• Provide detailed and meaningful analysis on members’ underwriting and claims information, helping users to identify potential trends and to get to know member profiles better.
• Enable users to make more informed and appropriate decisions regarding their member insurance offering.
  

For more information on CommInsureIntelHub; or how we can collaborate on data management, share insights and develop sustainable products and services to meet evolving membership needs, please contact your CommInsure Account Manager or a member of the team at comminsurewholesalelife@cba.com.au.