- \n
- Excessive delays<\/li>\n
- Poor customer service<\/li>\n
- Ineffective claims handling procedures<\/li>\n<\/ul>\n
ASIC Chair Joe Longo <\/strong>is calling on industry leaders to take ownership of the problems and flex their muscle to fix the failings, with his report finding 80% of reviewed claims were delayed by processing issues within the fund\u2019s control.<\/p>\n
…ultimately it is the customers who suffer…<\/p><\/blockquote>\n
“This is an important report that looked at 10 trustees, representing a total of 38 percent of all member benefits in superannuation funds regulated by the Australian Prudential Regulation Authority,” says Longo.<\/p>\n
![\"Joe](\"https:\/\/riskinfo.com.au\/news\/files\/2025\/03\/joseph-longo-potrait.jpg\")
Joe Longo…Super industry need to take ownership of system problems.<\/figcaption><\/figure>\n “While some trustees performed better than others, tellingly none of the reviewed trustees monitored or reported on their end-to-end claims handling times or performance.”<\/p>\n
At the heart of this issue, says Longo, is that super fund leadership doesn\u2019t have a grip on the fund\u2019s data, systems and processes.<\/p>\n
He says the kind of disconnect ASIC found is “…unacceptable in any area of corporate Australia, but in the superannuation sector it is particularly serious, because super affects everyone from the boardroom to the living room…And ultimately it is the customers who suffer for it”.<\/p>\n
ASIC Commissioner Simone Constant<\/strong> says she is calling on the superannuation industry to immediately review and address death benefit claims handling deficiencies and suggests the following:<\/p>\n
- \n
- Better customer service and faster response times<\/li>\n
- Improved monitoring and reporting on claims handling timeframes<\/li>\n
- Streamlined processes and procedures<\/li>\n
- Better guidance and training for staff<\/li>\n
- Removing barriers for First Nations members and claimants<\/li>\n
- Clearer communications and more support for members<\/li>\n<\/ul>\n
Constant says there was huge variation in claims handling times across trustees reviewed by ASIC and that trustees had a lot of control over how quickly claims are settled.<\/p>\n
“Many of the complaints we read were distressing,” says Constant. “We saw deep grief, vulnerability, frustration and genuine suffering.”<\/p>\n
![\"ASIC](\"https:\/\/riskinfo.com.au\/news\/files\/2025\/03\/25-049mr-super-msdb-infographic-with-heading.png\")
<\/p>\nFirst Nations<\/strong><\/p>\n
In one case, a trustee took more than 500 days to pay a death benefit of around $100,000 to a First Nations woman who was grieving the loss of her husband, says Constant.<\/p>\n
Leading First Nations advocates are now calling on parliamentarians to commit to legislated mandatory customer service standards in superannuation.<\/p>\n
Super funds do a great job collecting our money, but let us down when it matters most…<\/p><\/blockquote>\n
Despite handling billions of dollars in retirement savings, most super funds still don\u2019t know which of their members are First Nations, states Mob Strong Debt Help<\/a>, a part of the Financial Rights Legal Centre<\/a>.<\/p>\n
\u201cTrust is key to super trustees,” says Mark Holden<\/strong>, Mob Strong Debt Help Senior Solicitor and Policy Advocate.<\/p>\n
![\"Mark](\"https:\/\/riskinfo.com.au\/news\/files\/2025\/03\/1295_Mark_88A7065.jpg\")
Mark Holden<\/figcaption><\/figure>\n \u201cSuper funds do a great job collecting our money, but let us down when it matters most \u2013 when we\u2019ve lost someone, when we\u2019re grieving, and when we need access.\u201d<\/p>\n
Barriers<\/strong><\/p>\n
![\"Xavier](\"https:\/\/riskinfo.com.au\/news\/files\/2025\/03\/Xavier-OHalloran.jpeg\")