Pushing the boundaries of data in super

Transcription

1 Pushing the boundaries of data in super How big data can help us look after our members today and into the future Lara Bourguignon Managing Director, Plum Financial Services and GM, MLC Group Insurance 28 November

2 Looking after Australians What it means to manage corporate super: We re in the business of looking after Australians super, both during accumulation and into retirement We also look after Australians when they re sick, injured or unable to work We know that if we work collaboratively with employers we have 4-10x engagement with our members Big data presents opportunities to lift this even further to improve our services and help us look after Australians, now and into the future 2 2

3 The super landscape today 80% of Australians are disengaged in their super 1 Two out of three working Australians expect to run out of retirement savings by age 70 2 The industry is dealing with regulatory changes eg Stronger Super Many Australians lack trust in financial services Too many people relying on the government pension Up to 95% of Australian families are underinsured 3 Still dealing with the long-term impacts of the GFC and market volatility Australia s population is ageing 3 1. The Hon Bill Shorten MP, Assistant Treasurer and Minister for Financial Services and Superannuation, 2010, Commonwealth of Australia Mercer Superannuation Sentiment Index, February The Lifewise NATSEM Underinsurance Report, University of Canberra, February

4 Australia s super system some fast facts 4 Source: Dynamics Superannuation Infographic, Deliotte

5 Big data and member engagement Fast facts: Now: working age individuals 4:1 retiree 2033: working age individuals 3:1 retiree Current under 30s will have 1/3 super assets in 2033 Millennials will be 20% of the workforce in 2033 Super is a low engagement category, which has two key implications: 1. To engage members you need to show you've done some work and you understand them 2. You need to engage younger members with something other than super 5 Source: Dynamics Superannuation Infographic, Deliotte

6 A wealth of data We leave traces of our lives in the digital world 6 6

7 How can big data help? Greater efficiency Reduce risk Manage costs through more targeted communications Foresee fund outflows Retain members Develop the right products and services Enhance service differentiation and member engagement 7 7

8 7 attitudinal segments Attitudes drive activation I prefer to let experts manage my finances 8 Source: MLC Consumer Segmentation Study 8

9 Improving engagement with members Big data can help us get to know our members and their needs. Once we know our members, we can provide them with the right information and advice, through the right channels. BUT it s also about reaching out at the right time. Importantly, with big data we can begin to address major transitions, life changes, issues in real time with the right information and advice. Ultimately this means we can help members make the best decisions to prepare for their future 9 9

10 Events Snapshot of a corporate super member Accumulation Pre-retiree Retiree Access to free Online advice F2F education seminars Access to holistic financial advice Access to limited phone based financial advice Married Redundancy 50! Retired First child Divorce Estate planning Intergenerational wealth transfer Targeted marketing compelling peripheral offers Consolidation Transition to personal plan Log into website / online calculators Transition to retirement product 10

11 How real-time analytics and predicative data can help us provide financial advice 11 11

12 Looking ahead big data and the future of super We can help more people live better, self-funded retirements through providing more timely, targeted advice. We also have the opportunity to provide a better member experience. Using big data to plan for the future will become key to engaging the next wave of super stakeholders Gen X, Gen Y and the Millennials. Strategising for the future to deliver more innovative, tailored products based on the needs of these generations in 20 years time