Insurance Claims Management
What has Cbus done to fix the issues in relation to the insurance claims processing delays?
We are committed to fixing these issues and have worked with our administration partners to assign extra resources and improve insurance claims processing.
To this end, the key programs of work we already have in place include the following:
- Adding resources and the employment of additional staff in the insurance contact centre
- Adding resources in the claims team to respond to members and their families more quickly – including doubling the size of the case management team at our administrator
- Developing key skills in our contact centre so staff can have more meaningful and productive interactions with our members in order to assist them more efficiently
- Reducing the backlog of claims
- New leadership across the Cbus claims operational team at our administrator
- Changes to our website to make information simpler for members and people making an insurance claim
- Introducing a simplified ID process to minimise requirements on claimants that had experienced delays in claims processing.
All of this work is focused on delivering improvements to reduce delays in insurance claims processing and to achieve a better claims experience for our members.
What is the status of the claims processing backlog at the moment?
In respect of the claims themselves – we can confirm that over 80% of the claims involved have already been resolved and these members and their beneficiaries have so far received $755 million in benefits.
We have also commenced a compensation program for affected members and claimants, and we are continuing to take steps towards building better and more resilient systems for the future.
We have a high acceptance rate of member insurance claims and in the last three years to 30 June 2024, we have paid 96.8% of insurance claims.
Will my Super balance be impacted by the ASIC legal proceedings and if there are fines imposed where does the money come from?
One of our regulators, the Australian Securities and Investments Commission, has commenced a legal action against us in relation to the delayed claims issues.
We will try and resolve this case without a long and costly legal battle.
Cbus Trustee has reserves to meet legal penalties imposed on the trustee. No penalties will be paid directly from your member account.
I’m unhappy that my claim took so long to process
We sincerely apologise for your experience and would like to reassure you that we are working with our administrator to achieve a better claims experience for our insured members.
If Cbus determines that you are eligible for compensation, you will receive a letter confirming your eligibility and the compensation amount.
We are currently in the process of assessing potential eligible claimants for compensation, based on eligibility criteria including:
- Claims which were processed from 01 August 2022 and have since been paid; and
- Were not paid within the standard length of time this process should take.
We started writing to eligible claimants in stages from April 2024, so if we find you are eligible for compensation, we will contact you by mail.
Independent Review of Board Governance
Why is Cbus the subject of an independent review?
APRA directed the Fund to undertake an independent review regarding certain aspects of board governance and fund expenditure management.
What are the actions Cbus are taking to comply with the Independent Review?
In August this year another of our regulators, the Australian Prudential Regulation Authority, directed us to commission an independent review of how we select board directors, and how we manage payments to unions and employer groups made as part of our ‘industry partnership’ programs. With APRA’s agreement the review was conducted by a respected consultant, Deloitte, in October 2024. The Board has now accepted in principle all 26 recommendations in the report. You can read Deloitte’s report on our website.
I can report to you that the review found that all Directors on the Cbus board met the ‘fit and proper’ test at the date of the report.
It also recognised that industry partnerships are an important way for us to grow membership and awareness of what we offer members. These industry partnerships give us direct access to current and potential members who rely on us for their financial security, at work and in retirement.
By addressing the recommendations of the Deloitte report we are determined to strengthen Cbus to become a better, stronger fund for our members.