Cbus CEO Kristian Fok has attributed high staff turnover at the organization handling claims to delayed death and disability insurance claims. The Australian Securities and Investments Commission (ASIC) is suing Cbus over allegations that the fund did not identify and prevent delays affecting 10,000 members since August 2022. Fok issued a public apology to affected members and their families, acknowledging that the majority of claims were unresolved for over a year. He emphasized that while the delays were unacceptable, Cbus was not withholding any money, and efforts were being made to rectify the situation.
Appearing before a Senate inquiry via video link, Fok admitted that the delays primarily stemmed from the outsourced administrator, Australian Administration Services. Despite this, Cbus took responsibility for the situation, recognizing the impact on families going through a challenging period. Fok highlighted the need for improvements in training, as well as addressing the high turnover rate experienced within the administrator. The fund had entered into an agreement with the outsourced service in 2020, but ultimately, Cbus was legally accountable for the situation according to ASIC.
Fok acknowledged the added distress caused by the delays and emphasized the fund’s commitment to addressing the issue. He noted that as Cbus underwent rapid growth, it had taken time to attract the right personnel to meet its needs. Since becoming CEO in the previous year, Fok had initiated significant changes in leadership and organizational capabilities to improve outcomes for members. The organization aimed to mature and enhance its operational efficiency to ensure better service delivery to its members. Fok’s statement reflected a desire for transparency and accountability in addressing the delays in claims processing.
The testimony before the Senate committee underscored the challenges faced by Cbus in managing the outsourced claims handling process and the associated delays. Fok’s acknowledgment of the need for organizational improvements and training enhancements indicated a commitment to resolving the issue promptly. The fund’s focus on rectifying the situation and delivering better outcomes for its members was highlighted as a priority. Fok’s emphasis on taking responsibility for the delays, despite the involvement of an external service provider, demonstrated a commitment to transparency and accountability in addressing the claims processing challenges.
The public apology issued by Fok on behalf of Cbus to the affected members and their families underscored the fund’s recognition of the distress caused by the delayed claims. The acknowledgment of the unacceptable nature of the delays, coupled with the commitment to rectifying the situation and improving operational efficiency, reflected a proactive approach to addressing the issue. The ongoing legal proceedings with ASIC highlighted the seriousness of the allegations against Cbus and the need to address the delays promptly. Fok’s statements during the Senate inquiry aimed to provide clarity on the situation and outline the steps being taken to prevent future delays and ensure better service delivery to members.
