The FSC has released the second draft of its Life Insurance Code of Practice 2.0 for public consultation.
A statement from the council says the revised draft incorporates feedback from the first consultation draft, as well as recommendations from:
- The Parliamentary Joint Committee on Corporations and Financial Services inquiry into the life insurance industry
- ASIC reviews
- Productivity Commission reports
- Feedback from consumer advocates and the Hayne Royal Commission
FSC CEO Sally Loane says that the code, which is mandatory for all its life insurance members and will be governed by the independent Life Code Compliance Committee, “…has been reviewed line-by-line and letter-by-letter from the starting point that every clause can be improved.”
(See: More “Teeth” for Life CCC to Enforce Life Insurance Code of Practice 2.0).
She says the council has had the code independently re-structured and re-written by plain English experts “…to ensure that the code is as easy to read and as easy to navigate for everyday Australians as possible.”
Loane adds that the FSC appreciates the consultative approach taken over recent months by consumer groups which has helped it develop a “stronger and more consumer-focused” code.
She says the council is pleased to present this version for a final public consultation before it submits the code for registration under ASIC’s new enforceable code regime.
The statement says the first code originally came into effect on 30 June 2016, binding all life insurance FSC members to minimum standards of service for consumers for the first time. The code covers all new policies taken out in Australia, because all life insurers issuing new policies in Australia are FSC members.
(Also see: FSC Defends Insurers Code Compliance).
“I am proud of the current Life Insurance Code of Practice and of the industry’s enthusiasm to adopt it, but we recognise that codes can always be further improved, and that’s what this version sets out to do.”
Loane adds the council looks forward to working with all stakeholders “…to ensure the Code gives consumers the confidence to get life insurance and trust that it will work as they expect and when they need it.”
Interested parties are invited to give their feedback on this draft of the code until 29 September 2021.
Click here to download a copy of the revised Code.
