In Canada, modern technology has helped pioneer a novel employee benefits approach to bridge the pensions inertia gap, as Amy Friedman explains.
With this app, the overall enrolment process is simplified. At the end of each session, the trainer walks participants through the process of filling out the applications. The app also enables trainers to monitor each attendee’s progress, letting them spot those who need assistance in making their selections.
Once the employee hits the ‘submit’ button, the data is transmitted wirelessly and securely to Sun Life’s systems for processing.
With the application process enabled at the seminar, it is far more likely that the employees attending would sign up for the benefits.
Based on industry experience, Sun Life projected that group retirement enrolment would jump from 10% to 75%. According to Sun Life, it could ensure that more employees took advantage of key benefits such as employer-matching contributions, low investment management fees and easy payroll contributions.
Sun Life recently launched a pilot program to take the concept further, using the iPad tablet to enable Canadian and US client employees to enrol in voluntary benefits. According to an earnings call transcript, the pilot showed ‘significant increases’ in voluntary enrolment volumes.
While Sun Life is to be admired for this innovation, it is worth considering whether insurers could take the idea further.
Perhaps an agent or bancassurer could use a secure tablet and an app to complete a point-of-sale transaction for a simplified-issue product. The app could contain the underwriting questions and interface with underwriting software for a decision.
Or, perhaps policyholders could download a company-sponsored app that could enable election or beneficiary changes, coverage increases, claim filing, or any other administrative need related to their insurance coverage.
A Google search produced several brands of tablet computer that can be bought for just over £100, which is significant but nevertheless small, compared with commissions and other marketing costs. Perhaps insurers could enhance their brand by offering free tablet computers with purchases?
Many customers (especially the young) use electronic gadgets, and they want simplicity and convenience for their financial and insurance needs. If this app can increase take-up rates, it could be a winner all around.
Amy Friedman is senior writer at RGA Reinsurance.
