According to a statement from the Cbus trustee, United Super, and MUFG—a subsidiary of Mitsubishi UFJ Financial Group—efforts have been made to improve processing and payment times. The entities have committed to further optimizing these times as part of their ongoing initiatives to enhance service delivery. Part of these improvements include increasing the level of digital engagement with members and enhancing communication channels.
This settlement follows legal proceedings initiated by the Australian Securities and Investments Commission (ASIC) in November of the previous year. ASIC accused United Super of mishandling the death and disability claims of thousands of members by failing to process them efficiently, honestly, and fairly. The superannuation fund had been providing various insurance options, including death and total and permanent disability insurance underwritten by TAL.
ASIC contended that Cbus was aware of the prolonged delays in processing these claims but did not act quickly or effectively enough to address the issues, prompting the legal action.
This settlement is crucial as it underscores the ongoing regulatory scrutiny in the superannuation sector. For consumers, particularly Cbus members, the outcome promises improved service delivery in terms of faster processing times for claims, which is a critical aspect of the trust placed in superannuation funds and their administrators.
For the industry, the case highlights the importance of compliance with ASIC’s standards in handling member claims. The expectation is that funds must maintain robust systems to address any inefficiencies swiftly, prioritizing member welfare and transparency.
Moving forward, both Cbus and MUFG are likely to focus on implementing their reforms comprehensively to prevent future compliance issues. Digitisation efforts will be key in these improvements, potentially setting a benchmark for other superannuation funds aiming to enhance their service frameworks.
For industry regulators, this settlement may serve as a blueprint for how assertive monitoring and legal action can lead to substantial reforms. Stakeholders across the sector will be closely observing how these changes impact member satisfaction and business operations in the long term.
