The corporate regulator has warned that some superannuation trustees are still failing to address basic shortcomings in death benefit claims handling, raising concerns about the sector’s readiness to meet growing demand from an ageing population.
In a progress review of 45 superannuation trustees, ASIC found that while many funds had improved their practices following earlier regulatory scrutiny, others had failed to implement fundamental process changes recommended more than two years ago.
ASIC commissioner Simone Constant said the regulator had observed encouraging signs of improvement, including a 53 per cent reduction in internal complaints about death benefit delays between early 2024 and late 2025.
“However, with claims volumes increasing by 10 per cent 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,” Constant said.
“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 report, Delivering on death benefits: Have super trustees stepped up?, assessed industry responses to recommendations outlined in its earlier review of death benefit claims handling practices.
The regulator identified several areas requiring further attention, including measuring end-to-end claim times, setting performance targets linked to claimant outcomes, improving communications with members and claimants, and strengthening support for First Nations members.
Concerns were also raised about trustees’ handling of low-value and low-risk claims and the ongoing use of claims staking practices.
“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,” Constant said.
“Trustees that have made positive steps in the right direction should sustain this momentum and ensure they are equipped to manage future service pressures.
“For trustees that have failed to take effective action, our progress review should serve as a wake-up call ahead of the Commonwealth Government’s proposed introduction of mandatory member services standards.”
ASIC said it would continue monitoring trustee performance and would consider enforcement action where member service obligations were not met.
“Fund members have a right to expect claims will be handled efficiently, honestly and fairly — this is an obligation for trustees under law.
“ASIC will consider the full range of regulatory tools at our disposal, including enforcement action, if trustees fail in this crucial obligation. We have done it before and if we need to, we will do it again.
“This is a mission critical area for trust Australians place in their superannuation system,” Constant said.
The regulator is also examining how trustees use complaints data to identify systemic issues and improve member outcomes as part of the next stage of its multi-year member services review.
Early findings have raised fresh concerns, with ASIC revealing that five of the 10 trustees currently under review had not identified a single systemic issue through complaints analysis during the review period. At least one trustee had failed to analyse complaints data altogether.
“A surge in complaints relating to death benefits was a catalyst for our review of claims handling. In the same way, trustees should use complaints data as an early warning system to detect and mitigate risks to members,” Constant said.
“Unfortunately, despite complaint numbers and trends rising overall between 2020 and 2026, early findings indicate that five of the 10 trustees we are reviewing have not identified a single systemic issue from analysis of their complaints data over our review period. At least one trustee failed to analyse their complaints data at all. This is baffling, and frankly, unacceptable.”
The latest review follows several high-profile enforcement actions by ASIC. In November last year, the Federal Court ordered Cbus to pay a $23.5 million penalty over delays affecting more than 7,000 death benefit and total and permanent disability insurance claims.
ASIC also commenced civil penalty proceedings against AustralianSuper in March 2025 over alleged delays in processing death benefit claims.
Earlier this month, the Federal Court found Telstra Super, now known as Tetra Servicing Pty Ltd, breached complaints handling obligations after failing to respond to about one-third of complaints within the mandatory 45-day timeframe.
