Given the increasing threat of cybercrime globally, Sanlam corporate sales and marketing CE Viresh Maharaj has warned the local retirement fund industry to give careful consideration to its cybersecurity.
Speaking at a pre-briefing session outlining the contents that will be unlocked at the Sanlam Benchmark 2019 event, he noted that retirement funds are also susceptible to cybercrime, given the high volume of personal data kept by insurers.
Sanlam’s Benchmark research aims to provide industry stakeholders with a trusted reference point for making retirement fund-related decisions and to effect positive outcomes in retirement for South Africans.
Along with a need to guard against cybercrime threats, the latest research has also indicated the need and desire for individual-focused communication with members of retirement funds, to engender sound financial decisions with regard to their funds.
For example, the company’s research has indicated that retirees are unaware of exactly what their funds entail, and are often blindsided by tax requirements following retirement, or the amount of money they will be getting.
Therefore, this is a major area where individual communication can assist to educate members.
Sanlam individual member support head Barend le Grange on Tuesday indicated that fund members are all different, with different expectations, which requires insurers to change how they engage members, to discern what they want from their funds.
“It is a one-size-does-not-fit-all approach.”
Individual communication can be enabled by data; however, it is important that technology is properly leveraged.
Le Grange also stressed the importance of a human element in addition to technology, especially to reassure members that their financial decisions are correct.