Not one trustee tracked end-to-end claims handling times

A review of major superannuation trustees by ASIC found that not even one monitored or reported on the full process of death benefit claims handling.

- Andrew McKean

The review of trustees including Australian Retirement Trust, Avanteos (Colonial First State), Brighter Super, Commonwealth Superannuation Corporation, HESTA, Hostplus, NM Super (AMP), Nulis (MLC), Rest, and UniSuper, found widespread failures.

ASIC found examples of excessive delays and poor service, gaps in trustee data and reporting, and inconsistencies in some trustees' processes and procedures.

ASIC also noted that communication and engagement with beneficiaries was often "ineffective and insensitive," reinforcing concerns previously raised by Financial Standard, including a case where Rest was accused of showing "zero compassion" to a family struggling to facilitate an insurance payout for a terminally ill loved one with weeks to live.

"At the heart of this issue is leadership that doesn't have a grip on the fund's data, systems and processes - and ultimately it's the customers who suffer...," ASIC chair Joe Longo said.