The Australian Securities and Investments Commission (ASIC) has launched legal action against Australian Super, alleging delays in processing nearly 7,000 death benefit claims. This move marks the latest in a series of legal challenges for the superannuation industry. Meanwhile, Insurance Australia Group (IAG) is expanding its property assessor team, responding to a surge in claims following ex-Tropical Cyclone Alfred. On the economic front, the Australian Stock Exchange (ASX) faces a downturn as the United States prepares to impose a 25% tariff on Australian steel and aluminum today.
ASIC's legal action against Australian Super centers on claims that between July 1, 2019, and October 18, 2024, the fund failed to process death benefit claims in a timely manner. This follows previous legal proceedings against Cbus, another major super fund, for similar delays affecting over 10,000 members. ASIC Deputy Chair Sarah Court emphasized the significance of the action.
"At its heart, this matter is about protecting vulnerable Australians and their families," – ASIC Deputy Chair Sarah Court
The Federal Court will examine these allegations as ASIC seeks to address systemic issues within the superannuation sector.
IAG Responds to Cyclone Alfred Damage
Insurance Australia Group (IAG) is ramping up its efforts to address the aftermath of ex-Tropical Cyclone Alfred. The insurer has received over 4,000 claims from affected regions in southeast Queensland and Northern New South Wales. To manage this influx, IAG is increasing its team of property assessors by bringing in additional staff from its New Zealand operations. The company has more than 250,000 customers in the impacted areas.
IAG CEO Nick Hawkins outlined the measures taken to support affected customers.
"Our pre-booked temporary accommodation is now being utilised by some impacted customers and customers can also apply for emergency financial assistance and mental health support," – IAG CEO Nick Hawkins
Hawkins further elaborated on IAG's proactive approach to claims management.
"We have been on the ground since Saturday morning assessing claims and conducting emergency repairs," – IAG CEO Nick Hawkins
This strategic move aims to provide swift assistance to policyholders dealing with the cyclone's aftermath.
Economic Challenges Amid Tariff Concerns
The Australian economy is facing challenges as global events take center stage. The imposition of a 25% US tariff on Australian steel and aluminum is set to occur at 3 pm AEDT today. This development has weighed heavily on market sentiment, contributing to a decline in ASX 200 futures, which point to a 1% drop at opening. By 10:30 am AEDT, the ASX 200 had fallen 1.2%, dipping just below 7,800 points.
The tariffs come amidst broader concerns about global trade dynamics. The White House's confirmation of punitive measures against Australian metals has raised questions about the potential impact on Australia's trade relationships. ANZ analysts suggest that while direct effects on Australia's goods exports may be minimal, indirect exposure through key trading partners could have significant implications.
In commodities markets, copper prices surged by 1.3%, while iron ore surpassed $US100 per tonne. These movements reflect broader volatility in global markets as investors respond to shifting geopolitical and economic landscapes.
ASIC's Legal Pursuit in Superannuation Sector
ASIC's legal action against Australian Super highlights ongoing challenges within the superannuation sector. The allegations focus on delays in processing death benefit claims, an issue that has drawn scrutiny from regulators and stakeholders alike. Deputy Chair Sarah Court emphasized the significance of timely claim processing.
"It is vital that death benefit claims are processed in a timely manner. Delays are likely to cause further pain and anxiety to people who are already suffering from grief, making what is already a difficult time even harder." – ASIC Deputy Chair Sarah Court
This case underscores ASIC's commitment to ensuring accountability within the industry and safeguarding the interests of grieving families.
