In March 2025, ASIC released Report 806, "Taking ownership of death benefits", a landmark review of how superannuation trustees handle death benefit claims. It found systemic failures — excessive delays, poor customer service and inadequate processes — that caused real harm to grieving Australians.
The review covered 10 trustees that together hold 38% of all member benefits in APRA-regulated funds, and ASIC set out 34 recommended actions for the industry.
The key numbers
Source: ASIC Report 806 and media release 25-049MR, 31 March 2025.
What ASIC found
None of the 10 trustees reviewed were even monitoring their own end-to-end claims handling times. The slowest closed just 8% of claims within 90 days, while the fastest closed 48%. ASIC found 78% of delays were caused by processing issues within trustees' control, and 27% of files involved poor customer service.
Around 17% of files involved vulnerable claimants, and roughly 30% of those were handled poorly. First Nations members experienced greater delays. Claims with a binding death benefit nomination were processed faster than those with a non-binding nomination or none at all.
In one case ASIC highlighted, a trustee took more than 500 days to pay an approximately $100,000 death benefit to a First Nations woman — without addressing her financial hardship or helping her navigate the claims process.
What ASIC's leaders said
ASIC Chair Joe Longo did not mince words: "At the heart of this issue is leadership that doesn't have a grip on the fund's data, systems and processes."
Commissioner Simone Constant added: "The money from a death benefit can make a huge difference and each day a trustee delays that payment causes real harm to families."
The 34 actions for the industry
ASIC's report set out a long list of expectations for trustees, including:
- faster, more compassionate customer service
- actually monitoring and reporting on claims-handling timeframes
- streamlining processes so claims don't stall
- better staff guidance and training
- removing barriers for First Nations members
- clearer communication and support for grieving families
What it means for grieving families
The report makes one thing clear: you should not assume a death benefit claim will be processed promptly, even at a big-name fund. A few practical things can help:
- where possible, make sure a valid death benefit nomination is in place — ideally a binding one, which tends to be processed faster
- follow up the fund and keep records of every form and conversation
- raise a formal complaint and escalate to the Australian Financial Complaints Authority (AFCA) if a claim stalls
- ask for help if you are vulnerable or facing financial hardship
Free Claim Check
At ClaimSure, we help families understand and follow up potential death benefit and life insurance claims through super.
We can help you:
- review your situation in plain English
- identify relevant super accounts, including lost or forgotten super
- understand whether there may be a death benefit, TPD, or income protection claim worth pursuing — and what to do if it is being delayed
Start with a Free Claim Check
Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.
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