For much of the past year or so, there has been a great deal of focus on the superannuation industry and its processing of insurance claims, largely owing to immense delays at some of the largest institutions.
Stories have emerged of the likes of AustralianSuper and Cbus delaying paying claims to beneficiaries, sometimes by as much as four years. And it’s not only a failure of their duty to members, but a failure of their systems.
In March, ASIC’s claims handling report found 78% of delays were caused by processing issues within the trustees’ control. Just 48% of claims were paid within 90 days. The most horrifying finding? A trustee that took over 500 days to pay a claim to a grieving widow and failed to respond to her financial hardship concerns.
