ACCC Greenlights Life Insurers’ Commitment to Health Workers

0

The ACCC has granted interim authorisation allowing life insurers to co-ordinate to ensure frontline healthcare workers are not excluded from coverage due to potential, or actual, exposure to COVID-19.

(See Underwriting Announcement – Frontline Healthcare Workers).

A statement from the competition regulator says the interim authorisation, granted to the Financial Services Council (FSC) and its members ”… means that exposure to COVID-19 cannot be used as a reason to decline life insurance coverage to a frontline health worker, or to charge higher premiums or apply risk exclusions to any new policy”.

ACCC Chair Rod Sims says in the statement that the commission sees ”… a clear public interest in allowing FSC members to work together to provide a consistent, clear and fair approach to people performing critical work during this pandemic”.

ACCC Chair, Rod Sims …a clear public interest in allowing FSC members to work together.

“The authorisation does not include co-ordination on pricing, meaning customers should still shop around.”

He noted too that the commission would “…closely monitor the effect of these arrangements and when it is appropriate for this authorisation to be revoked”.

“The interim authorisation applies to new policies, while customers with existing policies will maintain all current benefits. Healthcare workers who have taken out new cover between 11 March 2020 (when the World Health Organisation declared COVID-19 to be a pandemic) and the announcement of the commitment by FSC on 6 April 2020, should check with their life insurance company or superannuation provider about any exclusions that may apply,” the statement says.

ACCC says that having granted urgent interim authorisation, it will now seek feedback on the application.