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Superannuation
817 super complaints during COVID-19

The Australian Financial Complaints Authority has revealed the breakdown of what was complained about between 3 March 2020 and 31 August 2020.

Superannuation complaints were dwarfed by other industries with just 817 of the 7420 total.

Travel insurance complaints made up the bulk, with 2610. There were 910 complaints about credit cards and 674 about home loans.

Personal loans and business loans prompted 398 and 172 complaints respectively.

By issue, delays in claim handing (883) and denial of claim (728) or denial of claim exclusion or condition (720) were the most common reasons for people complaining.

General insurers accounted for 41% of complaints and credit card companies made up 35% of complaints. Just 14% of complaints were directed at super funds.

"The data released today covers complaints lodged up to 30 June 2020. The early impact of COVID-19 can be seen in the spikes in complaints relating to travel insurance and early access to superannuation in particular," AFCA chief executive and chief ombudsman David Locke said.

"With the early access to superannuation, complaints initially related to delays in payments. It was challenging for many superannuation funds to process such a high number of requests in a short period of time. AFCA worked proactively with the funds to resolve consumer concerns as they arose and to learn any lessons before the second phase of withdrawal requests commenced in early July 2020."

He acknowledged that there were fewer complaints about super funds during the second round of early release of super applications in the new financial year as the system had become more efficient.

Read more: AFCAAustralian Financial Complaints AuthorityDavid Locke
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