ASIC hits super funds on death claims handling | Australian Markets
Superannuation funds have been hit with a listing of 34 suggestions from the Australian Securities and Investments Commission in a report which has discovered critical shortcomings with respect to death advantages claims handling.
Releasing the report right this moment, ASIC mentioned the report had revealed “devastating impacts” from poor industry practices.
ASIC chair, Joe Longo mentioned the report has recognized a vary of points, together with extreme delays, poor customer support, and ineffective claims handling procedures, and known as on industry leaders to take possession of the issues and flex their muscle to repair the failings.
“This is an important report that looked at 10 trustees, representing a total of 38% of all member benefits in superannuation funds regulated by the Australian Prudential Regulation Authority. 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,” he mentioned.
‘At the heart of this issue is leadership that doesn’t have a grip on the fund’s information, systems and processes – and finally it’s the clients who are suffering for it,” Longo mentioned.
ASIC Commissioner, Simone Constant mentioned the regulator is looking on the superannuation industry to instantly review and handle death advantages claims handling.
The ASIC review discovered of the ten trustees discovered:
- many examples of extreme delays and poor service
- gaps in trustee information and reporting
- some trustees’ processes and procedures have been unclear and inconsistent
- communication and engagement have been usually ineffective and insensitive, and
- insufficient help for First Nations claimants and claimants experiencing vulnerability.
ASIC reviewed:
- Australian Retirement Trust
- Avanteos (Colonial First State)
- Brighter Super
- Commonwealth Superannuation Corporation
- HESTA
- Hostplus
- NM Super (AMP)
- Nulis (MLC)
- Rest
- UniSuper
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