NRMA targets SMEs for super deal
NRMA Financial Services’ planners will be one of the key distributors of superan-nuation services aimed specifically at small to medium business groups (SMEs).
NRMA Financial Services’ planners will be one of the key distributors of superan-nuation services aimed specifically at small to medium business groups (SMEs).
Working Super, a public offer type superannuation fund and Business Choice, a new service allowing employers to make payments to a multiple number of funds on their employees’ behalf, will be sold through NRMA’s network of 40 planners, as well as through a salaried sales force in NSW and WA.
David Kelsey, business manager for superannuation and retirement at NRMA Fi-nancial Services, says the group’s distribution strategy in this area will mirror that of SGIO, the WA-based insurer acquired last November by the group. SGIO has been selling commercial insurance to SMEs, which constitute their target market.
“NRMA obviously has a very large membership base of SMEs,” he says.
Kelsey says the approach is the first time a financial services organisation has sought to specifically target this end of the market. The Commonwealth Bank of-fers a similar scheme, but this is aimed at employers with 20 or more employees.
The Australian Bureau of Statistics estimates the SME market at 98 per cent of Australian businesses, according to NRMA. With many workers’ awards including choice of fund, small employers are facing greater costs associated with the ad-ministration of superannuation, Kelsey says.
“We do feel there is a need for this service at the moment.”
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