FSC Flags Second Version of Insurance Code

The Financial Services Council (FSC) has begun work on the second iteration of its Life Insurance Code of Practice (LICP) and will release a draft version later this year.

FSC Chief Executive, Sally Loane said version two of the LICP would come into force next year and the FSC was meeting with ASIC with the intention of having the Code approved by the regulator.

“Although the first version of the Code has only been in place for nine months, work is well underway on the second version of the FSC Life Code of Practice,” Loane said, addressing attendees at the recent FSC Life Insurance Conference.

“We’re looking to get Code 2.0 out for public consultation later this year with it coming into force by 1 July 2019. One key question is about getting ASIC approval of the Code. We’re meeting with ASIC regularly to discuss this,” Loane added.

A panel session at the conference heard the second version of the Code would include more details around how insurers should handle mental health issues, and improvements to rules around claims handling.

Speaking at the conference, the Minister for Revenue and Financial Services, Kelly O’Dwyer urged the FSC to continue to seek ASIC approval of the Code.

“ASIC approval will strengthen consumer confidence in the Code by ensuring, among other things, that it meets ASIC’s standards on remedies for consumer complaints. In this sense, ASIC approval is important for both practical and symbolic reasons,” O’Dwyer said.