Damien Mu
Group insurers working with their superannuation fund partners must continue to seek innovation in key areas such as benefit design, claims management, technological support and client engagement in order to tackle the unique challenges facing the sector, according to AIA Australia.
These themes form the basis of a range of discussions at yesterday’s AIA Australia/Conexus Group Insurance Summit, which brings together leading figures from across the group insurance industry to discuss and debate the issues, challenges and opportunities shaping the market today.
Damien Mu, Chief Executive Officer of AIA Australia, said the issue of sustainability is critical as insurers look to evolve their business model in response to the current market climate.
“Since its inception, the group insurance industry has played a hugely important role in providing cover to millions of Australians who would otherwise have been unprotected, and helping to address Australia’s underinsurance gap which is significant by world standards.”
“We are now seeing the evolution of that industry, as insurers and funds hone and reassess their product and service offerings to cater to a changing demographic. For the majority of insurers that process is well underway, which is what today’s event is all about – discussing progress so far and where additional opportunities for innovation lie.”
Claims management under the microscope
One of the key focus areas of the Summit is claims management, and the impact that early intervention and return to work programs can have on both employee health and insurer bottom lines. Many group insurers have implemented occupational rehabilitation programs and are beginning to see a positive change in claims duration.
The issue of widespread chronic illness has also had significant implications for the group insurance industry.
“Three in five Australian adults are now considered overweight or obese, which has contributed to an increase in lifestyle-related diseases. For example 280 Australians are diagnosed with diabetes every day”, said Mr Mu.
However, the industry has an opportunity to engage with consumers around health and lifestyle to achieve better outcomes for both claimants and insurers.
“To better engage Australians with their lifestyle choices, we are beginning to change the life insurance conversation from ‘what if something happens’ to ‘how can we prevent it from happening’,” said Mr Mu.
“AIA Australia’s recently launched AIA Vitality program, which offers reduced premiums on eligible policies, is a good example of this, and its strong reception in the market illustrates how innovation in the sector can change lives as well as business outcomes.”
Mr Mu said AIA Australia was committed to leading the industry on innovation and improvement of services, with a view to ensuring a viable future for group insurers.
“The good news is that innovation is already happening, but more needs to be done”, he said. “By coming together to examine key areas of our practice, we can identify opportunities and embrace change where it is needed, so that our industry is progressing strongly towards sustainability.”
Click here or more information on the AIA Australia/Conexus Group Insurance Summit.