While Australia鈥檚 superannuation fund assets reached a record high in 2024, the industry also got a wake-up call around member servicing. Specifically, regulators spotlight long delays in payments on death and disability insurance claims鈥攚hich, in some cases, took over a year. The head of the Australian Securities and Investments Commission (ASIC) called the issue 鈥渨idespread鈥� and put all fund CEOs on notice that they would be held to account for lapses in member servicing.
In our 2025 superannuation industry outlook, the importance of high-quality member servicing emerged as the number one theme expected to shape the industry in the year ahead. Excellent service has always been an important competitive differentiator, but in light of the past year鈥檚 events, it has become a regulatory priority.
To be clear, superannuation funds take member servicing seriously. The challenge is to deliver high-quality service at scale to thousands or even millions of members. Competitive pressure compounds the challenge to meet member expectations for more personalised low-touch experiences. Members expect their funds to 鈥渒now鈥� them, provide relevant advice and support them throughout their entire financial journey鈥攂efore, into and after retirement.
Technology plays a pivotal role in elevating member experiences. For years, funds have invested in systems to drive operational speed and efficiency. More recently, however, they have begun investing in modern, intelligent technologies that give them insights into member behavior and enable them to tailor the member experience to each individual with remarkable precision.
Super funds are also investing significant sums in digital tools that allow them to bridge the 鈥渁dvice gap.鈥� It is simply impossible for each of the 23 million members to have regular one-on-one conversations with a human advisor. Digital communications, information access and transaction tools fill the void. A sophisticated, intelligent digital advice engine can provide personalised planning guidance with remarkable precision based on a member鈥檚 account history and financial profile. In fact, many members鈥攜ounger ones in particular鈥攑refer online self-service to human contact.
Of course, funds must account for a wide range of interaction preferences among their members鈥攊ncluding a knowledgeable and responsive voice at the other end of the line when they call with a question or concern. Flexible service models and omnichannel communications capabilities, including web, voice, text and email, will enable funds to meet all members 鈥渨here they are.鈥�
A modern technology platform can help deliver superior member service and show regulators that a fund is investing in meeting its member obligations. Our analysis highlights this topic and explores several other top-of-mind themes driving superannuation today 鈥� from cybersecurity to financial wellness, post-retirement strategies, and why fund managers should look into emerging technologies sooner rather than later. To prepare for the coming year鈥檚 challenges and opportunities, download the full "The Key to Staying Ahead in 2025: Themes Shaping the Future of Superannuation" report.
