The FSC has welcomed the Life Code Compliance Committee’s (LCCC) findings that 100 percent of life insurers, issuing policies in Australia today, have met the Life Insurance Code of Practice requirements on medical definitions.
A statement from the council says that the LCCC undertook an Own Motion Inquiry (OMI) into how Life Code subscribers are meeting the code’s requirements on the review of medical definitions.
FSC CEO Sally Loane says the council was very pleased “…with this excellent level of compliance with reviewing and updating medical definitions, as required by the code”.
“As the LCCC states, in challenging and uncertain economic times, the code’s consumer protections are especially relevant, and ensuring that definitions are up to date and fit-for-purpose is a clear way to show that subscribers prioritise fair outcomes for their customers.”
She adds that the industry is working hard for its customers to make sure that policies are aligned to current medical practice in Australia.
The industry reviewed 791 medical definitions in 98 products as required by the code, and made 773 updates.
The statement says that the FSC is currently in the process of preparing the next iteration of the Life Insurance Code “…which will further improve outcomes for customers”.
As part of this review, the FSC will consider the seven recommendations made by the LCCC.
Click here for a copy of the LCCC report.
