Over the past 12 months, insurance claims handling and reporting within superannuation has been a prominent focus for regulators and the media. ASIC’s surveillance and court actions, coupled with APRA’s data and reporting updates, make it clear that trustees must both meet their obligations and be seen to be identifying weaknesses and closing them quickly.
What’s happened in the past year?
Here is a snapshot summary of key actions / updates in the past year when it comes to insurance claims handling and reporting in super:
November 2024:
- ASIC sues Cbus (United Super as Trustee) for alleged systemic failures in death and TPD claims handling and breach reporting, signalling a sector-wide crackdown on member service failures.
- ASIC letter to all trustee CEOs urges immediate uplift and better board oversight, foreshadowing enforcement and the 2025 public report.
December 2024:
- APRA finalises SRS 251.0 (Insurance) updates (first reporting from year ending 30 June 2025). Tightening of reporting on insurance arrangements and payments.
March 2025:
- ASIC sues AustralianSuper over alleged significant failures in death benefit claims handling, reinforcing that accountability for member services “cannot be outsourced.”[1]
- ASIC publishes landmark report (REP 806) on death benefit claims handling, setting out 34 actions for trustees, highlighting delays, weak data/metrics, poor communications and inadequate support for vulnerable and First Nations claimants.
Where are the rules written down?
There is a substantial body of binding and industry guidance that trustees should align to when reviewing claims operations and reporting:
- APRA SPS 250 – Insurance in Superannuation: Insurance management framework, due diligence of arrangements, and board oversight.
- ASIC RG 271 – Internal Dispute Resolution: Enforceable standards and timeframes for handling complaints, including claims-related complaints.
- APRA SRS 251.0 – Insurance: Details of reporting forms SRF 251.0 – SRF 251.3 covering arrangements, coverage, payments and premiums.
- Life Insurance Code of Practice: Service standards and member-centric expectations for claims and communication.
- ASIC REP 806 (March 2025): Detailed observations and better-practice expectations for death benefit claims handling.
What funds should do now
Funds should be taking the following actions to bring their processes up to speed and to avoid regulator scrutiny.
- Diagnose your end-to-end claims operating model (from notification to payment), including aged/complex claims pathways.
- Measure what matters: track end-to-end timeliness, stage-level cycle times, cohorts/outliers, and IDR performance; ensure Board-ready metrics and SRS 251.0 mapping.
- Tighten oversight of service providers: align SLAs/OLAs to outcomes; run file reviews and lessons-learned loops.
- Lift member communications: plain-language templates, transparent status updates, and specific support for vulnerable and First Nations claimants.
- Close gaps fast: prioritised action plan with owners and timeframes, with visible oversight by the Board.
How McGing can help
McGing provides a Claims Handling & Reporting Process Review for super funds, or independent assurance over internally completed reviews. We deliver a board-ready report, requirements traceability matrix (mapping findings to SPS 250, RG 271, SRS 251.0, the Life Insurance Code of Practice and ASIC REP 806), and a practical action plan. If this is a service your fund may be interested in, please see our brochure here for details and deliverables.
Daniel
Daniel Bartlett is a Consultant at McGing Advisory & Actuarial and provides a wide range of services for superannuation, insurance and other financial services entities.
[1] https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-034mr-asic-sues-australiansuper-alleging-significant-death-benefit-claims-failures/