Govt moves on mandatory super claims standards
The shortcomings of some superannuation funds with respect to the timely handling of death benefits and insurance claims have had their corollary in the Government announcing that it will introduce legislation to enforce mandatory service standards.
The announcement from the Government follows on from some of Australia’s largest funds being found to have fallen short of expectations on death and disability claims, including AustralianSuper and Cbus.
The Australian Securities and Investments Commission (ASIC) has investigated the issue and has flagged that it will be releasing a report early this year.
The Government’s announcement of mandatory and enforceable service standards drew quick responses from the Association of Superannuation Funds of Australia (ASFA) and the Council of Australian Life Insurers (CALI) both of which welcomed the move and promised adherence.
ASFA chief executive, Mary Delahunty said her organisation welcomed the government’s focus on strengthening member outcomes and stood ready to lead the sector’s response to the consultation in collaboration with other stakeholders.
The ASFA statement said that the Government had indicated the new standards would initially focus on the timely and compassionate handling of death benefits. The fair and efficient handling of insurance claims, and providing clear and accessible communications to members.
For its part, CALI said life insurers were committed to delivering a high level of service to customers.
CALI chief executive, Christine Cupitt said CALI would participate in the Federal Government process develop the new standards.
ASFA’s Delahunty pointed out that her organisation had already undertaken significant work in addressing the issues, including publishing a comprehensive service standard on death benefit payments.
“That process was led by respected superannuation expert and former Chair of the Superannuation Complaints Tribunal, Jocelyn Furlan, and convened by ASFA in conjunction with other sector bodies, including the Superannuation Members Council and the Financial Services Council, the Council of Australian Life Insurers, and targeted consultation with superannuation consumer groups.
“And as of today, ASFA is leading the sector’s development of a Service Standard for Insurance Claims Handling in Superannuation,” she said.
And who or how many of the Industry Super Funds and Life Co’s have been fined or banned for such disgusting and dishonest behaviour ? None
Industry Super Funds still bank how many millions $$$$$ in Life Insirance HIDDEN COMMISSIONS, that incentivise them to not process members claims.
Corrupt ASIC & APRA sit back and let it all happen and do next to nothing against best buddies Industry Super.
So funny, because it was CBUS that started the ball rolling on this, and they are one of the funds that they represent!
They should run “compare the pair” commercials which demonstrate how poorly industry funds handle death benefit and insurance claims compared to their retail counterparts. What’s often never mentioned in those ads are the abhorrently low levels of staff present at the industry super funds. It doesn’t matter if a new code or legislation is passed, they simply don’t have the man power to handle a decent level of service for all of their members. In addition to this, when financial advisers attempt to assist with such claims, industry funds try every trick in the book to circumvent us by claiming they act in the “members best interests”. Stephen Jones retiring is welcome and couldn’t come quickly enough, though I’m sure a new puppet is lined up for the next job, as Stephen cruises into retirement taking a very cushy job on one of their boards, watch this space!