Claims handling by superannuation trustees has come under intense scrutiny as ASIC embarks on a multi-year project examining industry practices and compliance[1]. Recent findings ahead of ASIC's 2025 report highlight critical deficiencies in claims handling, including inadequate data collection, poor performance metrics and unacceptably long delays for member death claims.
One of the most alarming revelations is the extended time—often exceeding 12 months—it takes for beneficiaries to receive insurance and superannuation benefits after a member's death. Adding to the concern is the inconsistent approach to defining and tracking when a claim is considered ‘lodged.’ Practices vary widely, with some funds only beginning the clock once all claim documentation is received, including a final death certificate. This lack of uniformity obscures the true duration of claims and prevents regulators and trustees from obtaining accurate insights into performance.
In contrast, Australia's personal injury schemes, including workers’ compensation and CTP, set a high benchmark for claims transparency and efficiency. These schemes compel insurers to:
- Report claim notifications and lodgements multiple times daily.
- Initiate contact with claimants or their families within two business days.
- Publicly report performance metrics to drive accountability and continuous improvement.
Such measures ensure claim durations are transparent, promote best practices and allow regulators to penalise non-compliance swiftly.
The financial and emotional toll of delayed claims is as profound for super fund members and their families as it is for claimants in personal injury schemes. It’s time for the superannuation sector to catch up. Universal reporting standards, clear definitions for claim lodgements and strict contact timelines must become the norm—not the exception.
Rather than relying solely on voluntary codes of conduct, the industry should proactively adapt the proven practices of personal injury schemes. By doing so, funds can avoid regulatory intervention and more importantly, meet the expectations of members at their most vulnerable moments.
[1] ASIC writes to superannuation trustees to drive improvement to death benefit claims handling | ASIC