AMP has lost the Mercer group life insurance contract to AIA Australia following a competitive market tender.

The contract will start on July 1 next year on retail superannuation products.

Mercer MD Pacific Ben Walsh says AIA’s “customer-first philosophy” sealed the deal, “both in terms of paying valid claims in a timely manner [and] its investment in cutting-edge online tools that make life easier for members”.

The contract will include rehabilitation services to enable faster returns to work, Mr Walsh says.

“Our members will also have more ways to access their insurance benefits, in particular through AIA’s eClaims service.

“This service reduces and simplifies the requirements… to commence the claims assessment process, which in turn increases the likelihood of a positive outcome for our customers.”

AIA CEO Damien Mu says insurance in super should focus on customer service tailored to individuals.

“We are proud to be selected as Mercer’s insurance partner for the next five years,” he said.