The FSC has released the Life Insurance Code of Practice 2.0, Review of Consultation Feedback and says it will make a number of additional changes including giving the code more “teeth” by giving the Life Code Compliance Committee new powers to enforce the code and impose sanctions.
FSC CEO Sally Loane says in a statement that the introduction of the Life Insurance Code of Practice in 2017 by Australia’s life insurers was an important step in seeking to lift consumer outcomes across the industry.
“Life insurers recognise the importance of the code and of reviewing the code as part of a process of continual improvement,” she says. (See: FSC Extends Consultation Period for New Life Code.)
Loane adds that there are many lessons learnt since the code was introduced “… which are incorporated in this response document. The Government will soon introduce legislation which would see certain provisions of the code made enforceable, breaches of which would be subject to civil penalties”.
The statement says that as a result of this consultation process ”… the FSC will make a number of additional changes, which build upon the changes previously introduced in the consultation draft of Code 2.0”, such as:
- Increased support for vulnerable customers including those with mental health conditions and those experiencing family violence
- Providing more protections for claimants such as new obligations on the use of interviews, surveillance and medical examinations
- Giving the code more “teeth” by giving the Life Code Compliance Committee new powers to enforce the code and impose sanctions
Loane thanked those who provided feedback and says the FSC looks forward to “…continuing the dialogue as we revise the code to ensure it is more accessible to consumers”.
Click here for a full copy of the Life Insurance Code of Practice 2.0, Review of Consultation Feedback.