FSC Extends Consultation Period for New Life Code

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The Financial Services Council has extended the consultation period for the second iteration of its Life Insurance Code of Practice.

Originally implemented in 2017, the updated Code draft was released to the market in mid-November 2018 for feedback and consultation (see: Revised FSC Life Code to Cover All Distribution Channels).

While more than 20 submissions on the updated draft Code have already been received or are in the process of being finalised, FSC CEO, Sally Loane, said several organisations had requested additional time to make their submissions to the new Code, which now remains open for consultation until 31 January 2019 (extended from 12 January).

The FSC Life Insurance Code of Practice is intended to lift standards across:
  • Product design
  • Sales
  • Underwriting
  • Customer service
  • Complaints
  • Claims handling
According to the Council, the new draft contains over 30 significant changes, including:
  • Banning pressure selling of products and coercive retention tactics
  • Banning medical disclosure checking without reasonable grounds
  • Ensuring customers are no better or worse off at claim time (excluding fraud)
  • Improving Funeral insurance to ensure people understand what they are buying
  • A raft of reforms to underwriting, claims and mental health
  • Separating Consumer Credit Insurance (CCI) from credit product sales

Advisers and others can click here to access the 76-page Consultation Draft for the updated FSC Life Insurance Code of Practice.



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