Cbus Super CEO Kristian Fok is set to appear before the Senate Economics References Committee today.
For some months, the Senate had planned to bring Cbus before the Senate Economics Committee alongside the prudential regulator APRA, Housing Australia, and various other superannuation funds in relation to a special inquiry to examine housing issues.
Senators have questions about a range of matters related to Cbus, including ASIC’s latest allegations of failed insurance claim handling procedures.
This appearance follows a lawsuit filed on Tuesday by the Australian Securities and Investments Commission (ASIC), accusing Cbus of failing to process over 10,000 death and disability claims in a timely manner, resulting in an estimated $20m in financial losses.
ASIC alleges that over half of Cbus’s claims faced processing delays, with some cases unresolved for more than a year. ASIC Deputy Chair Sarah Court emphasised the impact of these delays, stating, “Delays in claims processing cause real harm to families who may be relying on payments to meet critical expenses,” and added that these delays increased the distress for grieving families and individuals with disabilities.
Cbus, which holds approximately $94bn in assets and serves over 920,000 members, is a prominent industry super fund focused on workers in construction and building trades. Positioned as a profit-to-member fund, Cbus manages retirement savings and insurance benefits for employees, offering default insurance coverage for high-risk occupations. The Construction, Forestry and Maritime Employees Union (CFMEU) has a significant interest in the fund, with three trustees and a 21% ownership stake.
In response to the ASIC allegations, Cbus apologised for the delays and announced a compensation program for affected members. The fund attributed the issues to delays by an outsourced claims administrator and has since implemented measures to improve processing times. Cbus has also invited ASIC to consider alternative dispute resolution as a way to avoid lengthy litigation.
