The existing weaknesses in the death benefit claims handling practices of straggling superannuation trustees risk undermining confidence in the industry's readiness to service Australia's ageing population, according to Australian Securities & Investments Commission (ASIC).
A press release by ASIC said while many trustees have made positive inroads, others have failed to implement basic process improvements in response to recommendations handed down in “ASIC Report 806 Taking ownership of death benefits: How trustees can deliver outcomes Australians deserve (REP 806)”.
The assessment was done based on “ASIC’s progress review, Report 831 Delivering on death benefits: Have super trustees stepped up? (REP 831)”.
ASIC Commissioner Simone Constant said while it was pleasing to see many trustees take appropriate steps to address the claims handling failures identified by ASIC, the pace of improvement and an overall increase in claims volumes suggested not all trustees are well placed to meet future service pressures from Australia’s ageing population.
‘There are some promising findings in this report, including a 53% reduction in internal complaints about death benefit delays from early 2024 to late 2025.”
'However, with claims volumes increasing by 10% in the 12 months to October 2025 and with that growth expected to continue in the context of Australia’s ageing population, it’s clear that more work needs to be done if all trustees are to meet member expectations.
‘We’re particularly concerned that some trustees have not actioned basic process improvements and continue exposing grieving beneficiaries to harm at times of heightened emotional and financial distress.’
ASIC’s latest review of the reported progress of 45 superannuation trustees highlighted the following areas where trustees should take action:
• Measuring end-to-end claim times and holding themselves to account by setting performance targets that align to positive claimant outcomes.
• Being responsible for their own risk appetite and customer impact in the processing of low-value and low-risk claims, especially the practice of claims staking.
• Treating their members and claimants as customers, helping with proactive communications about the most important steps like making a valid binding death benefit nomination. This is of heightened importance where there are language and communication barriers.
• Enhancing support for First Nations members and claimants, including updating identification and other practices that produce sub-optimal outcomes.
Ms Constant said, “There is no excuse for delays in delivering better outcomes for death benefit claimants. Super trustees have now had over two years to respond to concerns that we began raising back in 2024 with our publication on improving superannuation member services in May 2024 and a direct letter to CEOs on assessing practices for handling death benefit claims in November 2024.”
She said ASIC will continue to monitor trustee progress in improving death benefit claims handling practices and will hold trustees to account for member service failures.