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.
26:14
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Quick takeaways
- The ongoing lawsuit against Cbus highlights significant governance issues in the superannuation industry, raising concerns over customer service and claims processing.
- As the superannuation sector evolves, there is an urgent need for reforms in governance structures to include diverse expertise and perspectives.
Deep dives
Escalating Scrutiny of Major Superannuation Funds
Major superannuation funds in Australia, after years of guaranteed inflows and minimal oversight, are facing increasing scrutiny due to rising customer complaints and significant governance issues. A landmark legal case against CBUS highlights concerns about the timely processing of insurance claims, with allegations of over $20 million owed to bereaved or disabled members. Reports indicate that CBUS, which manages about $94 billion and has nearly a million members, has struggled with the administration of claims due to inadequacies in its third-party administrator. This has drawn attention to broader issues in the superannuation industry, revealing systemic failings in customer service that extend beyond just one fund.
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