The opportunities presented by the MySuper element of the Stronger Super reforms can be realised by superannuation and insurance providers using a customer-centric strategy.
The new default superannuation environment has the potential to allow businesses to differentiate the services and value proposition it offers.
However, MySuper must be approached from the members' perspective by using a "strategic lens", MLC general manager of group insurance Megan Beer said at the Financial Services Council Life Insurance Conference 2012 yesterday.
"Will insurers really seize this as an opportunity to differentiate on service and will it be a catalyst for thinking about how to integrate from a consumer's perspective the default cover?" Beer said.
"Those insurers who deal with the change from a strategic perspective will really gain an advantage - this is not just a compliance exercise.
"What is your basis for competition: do you want to be a low-cost provider or be aligned with funds that are keen to have a more evolved MySuper that might be more focused on value?"
The claims philosophy is also integral to what trustees would offer to members, as well as the technology solutions to enable them to move in and out of default funds or choice arrangements.
Better knowledge and an understanding of the customer-base could also be a core competency required from the life insurance industry in order to capitalise on the MySuper opportunity, Beer said.
It is the responsibility of the industry to provide all considerations in determining what the MySuper offer would essentially look like and shape what choices would be available in a default environment, she said.
