ASIC takes significant steps to improve public sector services by enhancing government processes, particularly in claims management and transparency. The initiatives aim to revolutionise data management practices and propel digital government efforts, ensuring enhanced efficiency and transparency in services for the citizens of Australia.
Over the past year, ASIC has focused on ensuring transparency and accountability in processing superannuation claims, particularly regarding death benefits. The ageing Australian population will drive an increased demand for efficient and clear claims processing, as over six million Australians currently reach or exceed the superannuation preservation age. The projection shows that three million will increase in the coming ten years.
“Providing transparent and accountable member services is at the core of our mission,” stated ASIC Commissioner Simone Constant during her address at the Association of Superannuation Funds of Australia (ASFA) conference. “Superannuation funds are critical to Australians’ financial futures, and we must ensure that members receive the support they need when they face life’s most challenging events.”
Improving accountability in claims processing
ASIC recently uncovered that processing delays of total permanent disability (TPD) and death benefits claims affect more than 10,000 members. These delays, which often span over a year, expose serious flaws in the claims management procedures of some superannuation funds, impacting families during their most vulnerable times of grief.
ASIC emphasises enhancing how trustees monitor, evaluate, and handle death benefit claims. Some superannuation funds have significantly improved their claims processing systems, while others show a limited understanding of the data deficiencies in their processes. ASIC urges funds to track comprehensive metrics for claims processing to better reflect the actual experiences of claimants.
“We have seen significant gaps in how claims are tracked. It is critical to start the clock at the moment grieving family members contact funds, not when paperwork is received or documentation is complete,” stated ASIC Commissioner Simone Constant. “This shift will align processes with the fair expectations of members and help ensure more accurate, timely service.”
The Commission reached out to the CEOs of all APRA-regulated superannuation trustees, urging them to promptly enhance the oversight and monitoring of death benefit claims. ASIC will release a comprehensive report on claims processing in early 2025, highlighting systemic weaknesses and proposing necessary changes.
Boosting claims processing efficiency
Effective data management ensures accountability in public sector processes. Enhanced tracking systems for claims processing play a crucial role in ensuring transparency. They enable superannuation funds to use data-driven insights that improve service delivery and reduce delays.
“Without the proper metrics, we cannot hold trustees accountable for the experiences of their members. Data is key to understanding where processes fail and how to address these failures,” stated ASIC Commissioner Simone Constant.
The upcoming execution of the Financial Accountability Regime (FAR) serves as a crucial component of this initiative, holding senior executives personally accountable for any failures in meeting their legal obligations. This initiative will enhance oversight and foster a culture of transparency and accountability within the industry starting in March 2025.
Advancing digital public services
Enhancing claims processing and data management drives Australia’s digital government objectives forward. The government can minimise inefficiencies and ensure that citizens receive prompt, high-quality services by integrating extensive data and contemporary digital solutions in claims tracking. The Australian Government commits to enhancing public sector services with a comprehensive digital transformation strategy that focuses on increasing responsiveness and transparency.
“Digital government is not just about technology; it’s about using data to improve service delivery and accountability. These advancements in claims processing are an essential part of that vision,” stated ASIC Commissioner Simone Constant.
Digital systems and data management increasingly shape the public sector, driving reforms that enhance claims processing efficiency and contribute significantly to Australia’s broader digital transformation.
ASIC actively enhances transparency, accountability, and efficiency in the public sector by advancing initiatives in superannuation and claims processing. ASIC urges all stakeholders to take immediate action to refine their processes and meet the growing expectations of the Australian public, aligning with a broader effort to enhance data management and digital services within the public sector.
“These reforms are not optional. They are necessary to build the trust and confidence that Australians expect from their superannuation funds and other government services,” stated ASIC Commissioner Simone Constant. “It’s time to prioritise the needs of members, ensure better service delivery, and embrace the digital tools that will help us achieve this goal.”