It is fair to say life insurers have not been at the vanguard of technology; but consumer and customer needs are driving the transformation of systems, processes and a service culture in an industry that historically has changed little over a long period.
But within this industry, TAL has been at the forefront of technological advances in the domestic life sector. This started with the launch of Accelerate in 2007, with its online applications and automated underwriting increasing the ease and speed of insurance applications for the industry.
While TAL continues to innovate and offer more seamless functions for advisers and planners, it set a benchmark for the industry back in 2007, and now most participants provide similar offerings. A more recent initiative was the development of a web-based digital technology for the group insurance market that is the first in the world to meet a new global standard for the group life insurance industry.
Of the three sectors of the life industry – via advisers, direct, and group superannuation and workplace schemes – the group insurance market has been the slowest to take up technical innovation.
This is now changing. TAL has developed its new “world’s first” group digital interface solution for its newest superannuation partner, industry fund UniSuper.
The solution, using world-class web service standards, enables a fund to seamlessly share and transfer data and customer information with the insurer, resulting in better data quality and security as well as faster and more effective outcomes for customers.
The solution has been developed in line with the ACORD (Association for Cooperative Operations Research and Development) standard, known as AML (ACORD Messaging Library), for the insurance industry worldwide. ACORD is a US-based data standards organisation serving the global insurance industry.
The standard is based on XML design principles that automate the transfer of data between the super fund and the insurer in a highly secure environment, increasing data integrity and security and resulting in decisions for customers being made more quickly.
It adopts future-proof design, scalability and portability for both the fund and insurer.
Online trend
ACORD director, global development, Alan Stitzer said: “We were very pleased when TAL approached us to use AML for life insurance. This initiative by TAL and UniSuper that meets the AML standard is a world first for the wholesale life insurance market. Implementing ACORD standards has been shown to improve data quality and flow, increase efficiency, and achieve significant savings. TAL has been instrumental in advancing ACORD standards implementation in Australia.”
And while the direct life insurance sector is not as mature as the traditional adviser-based part of the retail sector, it has taken up with much more gusto the use of digital technology as a distribution and engagement channel with customers.
Direct providers are capitalising on the growing trend for consumers to both research and purchase online with their adoption of web-based portals; and this trend will surely continue.
Research from TAL released in November 2013 found that 56 per cent of Australians – equivalent to around 8 million people – have reviewed at least one financial product over the past 12 months, with many switching as a result. Of those who have investigated new financial products, at least half (or 4 million people) turned to the web to better educate themselves on the options available.
This article was originally published on the Professional Planner insurance app for iPad. Download the app.
