Earlier this year, Suncorp instituted regular workshops with Matt Lobdell, head of insurance at Sunsuper, and others to develop ways of better meeting the needs of its major client’s members. One of the outcomes was to restructure Suncorp so that it had a more centralised business structure so that “accountability for all group risk claims, underwriting, business development and risk management is under one umbrella,” Back says. “The buck stops with me. “This should improve cycle times, and provide flexibility and consistency in decision-making, rather than going from business unit to business unit.” Back also expects this structure to cut down contact points for members and make it easier for them to remain engaged through the underwriting and claims processes.

This should be assisted by “smarter, pre-populating” forms, which automatically generate reflexive questions relating specifically to answers about medical conditions detailed by members, and tele-underwriting capabilities, which enable administration staff to talk members through forms, clarify vague answers and reduce the incidence of back-and-forth paperwork sent through the mail. In 2008, Sunsuper acquired Citistreet Australia’s superannuation administration business, increasing its ability to interact directly with members. This gives it an enviable ability to insource a substantial part of its insurance underwriting and claims functions. Suncorp is currently providing training, accreditation and support services to help it fulfil this potential. “Sunsuper wants to take on more responsibility for more complex tasks and underwriting. It’s a great initiative, and they’re well set up to do it,” Back says.

“Owning an administrator gives them an advantage, and Suncorp can support them by setting controls in claims and underwriting functions, and assisting in auditing.” Suncorp team members already spend time in the fund’s office each week to provide underwriting and claims management accreditation programs to its administration staff. Back says the insurer has found the simpler early documentation can be easily mastered by funds, but the more complex cases, such as claims involving mentally ill members, should be handled by insurers. “It’s about having our people sit side-by-side with Sunsuper people, taking them through accreditation programs and helping them with auditing. “The more complex cases will sit with the insurer – but that’s not to say down the track the fund can’t do some of this. We’re ensuring that the fund knows as much about the process as we do.” This input should help the industry fund build the experience required to fulfil its insourcing aims without increasing its headcount, since much of the duplication of tasks by insurer and client will be eliminated as Sunsuper performs more tasks. Both the fund and insurer want to ensure this internalisation of duties is as seamless as possible and does not interrupt the delivery of insurance to members. He expects the journey will benefit Sunsuper’s members.