Your Guide to the New ASFA Claims Standard (for Health and Insurance Claims)

In July 2025, the Association of Superannuation Funds of Australia (ASFA) released its new Service Standard for Claims Handling in Superannuation (download).

It’s a detailed framework outlining good practice for managing insurance and health related claims covering everything from timelines and communication methods to oversight responsibilities and member support.

The standard is not law, and ASFA members are not compelled to comply, but with a recommended adoption deadline of 1 July 2026, and heavy involvement from industry bodies like the Super Members Council, the Council of Australian Life Insurers, and the Financial Services Council, it’s more than just a “nice to have” guidance.

For the funds willing to treat this seriously, the new changes present a perfect opportunity to transform member experience and differentiate in a competitive market.

‍Why claims handling matters more than ever

Claims handling is one of the most human aspects of the superannuation experience.

Unlike other points of differentiation like investment performance or marketing campaigns, it’s a direct interaction with members, often when they’re at their most vulnerable. A smooth, empathetic claims process can reinforce trust and loyalty, whereas a poor experience can do the opposite, with negative reviews and complaints that live online for years.

Google reviews for major funds already reveal a pattern: frustration with delays, lack of updates, and confusing requirements. While some of these challenges come from insurer processes, members rarely distinguish between the insurer and the fund. For them, it’s all one experience and that experience belongs to you.

The new ASFA Service Standard recognises this, focusing heavily on:

• Timeliness
• Proactive updates
• Plain language communication
• And member centric design
  
  

‍What the ASFA claims handling standard covers

The standard applies to insurance in superannuation, including Total and Permanent Disability (TPD), Income Protection (IP), and Terminal Illness Benefits (TIB), as well as early release of super due to permanent or temporary incapacity or terminal medical condition.

It doesn’t replace existing legislation, but it provides practical guidance for trustees to align their processes with best practice.

Key elements include:

1. Compassion and Respect

Trustees are urged to treat every claimant with empathy, recognising that claims often arise from life changing events. The process should be as straightforward as possible, with all communications in plain language.

2. Early Clarity

Members should be told at the outset:

• What benefits they may be eligible to claim,
• The steps involved in the process,
• Likely timeframes,
• And what documentation will be needed.

This reduces surprises and helps members lodge complete claims from the start.

3. Timely Responses

Requirements include:

• Claim acknowledgement within two business days,
• Response to queries within 10 business days,
• Insurer decision reviews within 15 business days (where possible).
  
  

4. Proactive Updates

Updates should be pushed, not pulled, meaning they’re initiated by the fund, not just provided when members chase for information.

5. Oversight and Accountability

Trustees must actively oversee insurers and service providers, ensuring service levels are met, delays are minimised, and members are kept informed.

6. Clear Roles and Responsibilities

Members should know exactly who’s handling their claim, what each party’s role is, and how to reach their main point of contact.

Why compliance isn’t enough

The ASFA Standard gives funds a clear roadmap for claims handling. But ticking the boxes won’t, on its own, solve the industry’s deeper trust issues. An idea that we always promote at Superware is that compliance is the floor, not the ceiling. The funds that stand out will be those that go beyond the minimum.

That means:

• Using technology to automate updates, not just send them manually,
• Integrating claims data across systems so members don’t have to repeat themselves,
• Using AI to automate steps such as document validation to speed up the process,
• Tracking member satisfaction at claim closure and feeding insights into continuous improvement 

This is where many funds still fall short. Compliance might keep you out of regulatory trouble. But it’s experience that will keep members, and win new ones.

‍

The risk of doing the bare minimum

Treating the ASFA Standard as a “one and done” exercise can backfire.

Why? Because member expectations are set by more than your competitors, they’re shaped by their experiences with banks, airlines, online retailers, and other service providers. They’re used to real time updates, self-service portals, and instant answers.

If your claims process takes months, requires repeated paperwork, and leaves members chasing for news, “compliant” won’t feel good enough.

‍

Turning the standard into a competitive advantage

Here’s how super funds might consider making member engagement a competitive advantage:

1. Map the member journey 

Understand every touchpoint from claim initiation to payment. Identify where delays or confusion happen, and fix them.

2. Digitise without losing the human touch

Provide secure portals for claim tracking, document upload, and messaging. But also give members an easy path to speak to a real person who understands their case.

3. Integrate insurer and fund processes

Avoid the “black hole” effect when claims move between insurer and trustee. Shared systems, APIs, or real time dashboards can keep everyone on the same page.

4. Measure more than timelines

Don’t just track whether you met the 15 business day review deadline or other minimum requirements. Actively measure member satisfaction scores, root causes of claims-related complaints, and repeat contact rates.

4. ‍Train for Empathy and Clarity

Equip staff (and service providers) to communicate in plain language and to adapt to members in vulnerable circumstances.

Treating new standards as a springboard

The new ASFA Claims Handling Standard is a welcome step towards better outcomes for members. But it’s just that, a step.

The new Minister for Financial Services, Daniel Mulino has affirmed the government's intention to introduce minimum member service standards in the superannuation industry (Investment Magazine).

Funds now have a choice: wait for service standards to become law, meet the ASFA standards in advance, move on, or use them as a springboard for deeper transformation.

The truly great funds will be those who see claims handling not just as a compliance exercise, but as a defining moment in the member relationship, a chance to prove, in action, that they put their members first.