The Fin Big super reckoning: Are Australians losing faith in the system?
Dec 4, 2024
In this conversation, James Thomson, a Chanticleer columnist for The Australian Financial Review, teams up with reporter Hannah Wootton to dissect the turmoil in Australia’s superannuation sector. They explore the significant lawsuit against Cbus for insurance claim delays, questioning accountability and customer trust. With super funds facing a governance crisis, they discuss the emotional toll on Australians due to poor claims handling. The duo also examines the urgent need for enhanced customer service and governance reform to restore faith in the system.
AI Snips
Chapters
Transcript
Episode notes
Cbus Lawsuit
- ASIC sued Cbus, a large industry super fund with $94B and 920,000 members, for $20M in unpaid death/disability claims.
- This highlights broader customer service issues and a potential $1B shortfall, raising concerns about the industry's reliability.
Board Governance Concerns
- Industry funds like Cbus select directors through equal representation from unions and employer groups.
- APRA raised concerns about Cbus's board composition, especially CFMEU-linked directors, questioning their expertise.
Wayne Swan's Defense
- Wayne Swan, CBUS chairman, defends the industry fund model and its strong returns, attributing criticism to politics.
- His defensiveness raises questions about his independence and openness to improving the existing model.