The Council of Australian Life Insurers says it is working closely with the FSC so it can take over governance of the new Life Insurance Code of Practice.
In a statement regarding the new code, which came into effect on July 1, CALI “…acknowledges the work of the FSC on the updated Life Code and is working closely with the FSC to transition governance of the Life Code to CALI by 30 September 2023.”
CALI says the new code will deliver higher standards and stronger consumer protections across the life insurance industry with CEO Christine Cupitt noting the new Life Code will help ensure the life insurance industry is accessible, understandable and trusted (see: New Life Code Takes Effect.)
She says Australian life insurers have listened to the needs of their customers and the community “…by developing an updated Life Code that sets a higher bar for the industry.”
Tougher Penalties and Strong Independent Enforcement
The new Life Code will deliver “…better outcomes for Australians, tougher penalties for conduct breaches and strong independent enforcement.”
The statement notes that each of CALI’s 19 members are subscribed to the Life Code.
It highlights some of the 50 additional consumer protections including:
- Increased support for customers experiencing vulnerability or financial hardship
- Guidelines for the development of family violence policies
- The removal of blanket mental health conditions
- More transparency around underwriting decisions
- An extension of the moratorium on genetic testing
- Stronger powers for the Life Code Compliance Committee (which operates independently of the life insurance industry and is administered by AFCA)
CALI says the LCCC, which monitors the life insurance industry’s application of the Life Code and the conduct of individual insurers “…will have increased powers to impose sanctions and financial penalties on organisations subscribed to the Life Code. These measures have been developed in conjunction with consumer groups to ensure they are appropriately robust.”
