QSuper Settles Insurance Premium Disclosure Class Action for $67M

QSuper has agreed to a $67m settlement in a class action over insurance premium disclosure. The fund, which merged with Sunsuper to create Australia's second-biggest fund, has not admitted wrongdoing but chose to settle to avoid potential costs from ongoing litigation. The settlement will be paid from a reserve, and no member accounts will be affected. The agreement still needs court approval. The class action was brought against the fund in 2021, alleging breaches of the Corporations Act and Superannuation Industry Act.

In a significant development, QSuper has agreed to a $67 million settlement in a class action over insurance premium disclosure. The settlement, reached on May 27, 2025, is subject to court approval. The fund, which merged with Sunsuper to create Australia's second-biggest fund, has not admitted wrongdoing but chose to settle to avoid potential costs from ongoing litigation. The settlement will be paid from a reserve, and no member accounts will be affected.

The class action, filed in 2021, alleged breaches of the Corporations Act and Superannuation Industry Act. It was brought against the fund by Shine Lawyers on behalf of certain current and former QSuper members who held insurance cover through a QSuper account on July 1, 2016. The settlement amount includes legal costs and disbursements, and other fees and costs associated with the class action.

The in-principle agreement reached by QSuper and Shine Lawyers aims to avoid the risk of ongoing litigation costs. The settlement will be paid from a reserve set aside by QSuper before the merger with Sunsuper. The QSuper Board has stated that the settlement is in line with their duty to act in members' best financial interests.

The settlement remains subject to court approval. Once approved, the court will decide how eligible group members will receive their settlement payments. Eligible group members will be contacted directly through a court-approved notice with further information. The settlement scheme will be administered by a court-approved administrator.

QSuper has assured members that the settlement does not impact their savings. The upcoming insurance update, which is part of the fund's standard annual review of premiums, is not connected to the class action. The review results in reduced premiums for many members.

For more information on the class action and the settlement process, eligible group members are directed to the Shine Lawyers webpage or to seek independent legal advice.

References:
[1] https://qsuper.qld.gov.au/about/disclosure/class-action