The decrease in consumer complaints in relation to life insurers coincides with the investment the industry has made in improving internal processes and practices, says the Council of Australian Life Insurers.
In a statement CALI acknowledges AFCA’s complaints data for 2022-23 which it says “pleasingly” saw consumer complaints in relation to life insurers drop 24% compared with FY22 (see: Sharp Decline in Life Insurance Complaints).
“This decrease coincides with the substantial investment the life insurance industry has made in improving internal processes and practices ahead of the commencement of the Life Insurance Code of Practice on 1 July, 2023.”
It says that in addition to these improvements, the life insurance industry remains committed to working with superannuation fund trustees to continuously improve claims handling in superannuation.
“Australians rightly expect claims made about life insurance, including life insurance held within superannuation, to be dealt with quickly and efficiently. The life insurance industry takes these consumer expectations seriously, especially given the rising cost of living pressures facing everyday Australians.”
…The council and its members are committed to supporting superannuation trustees to continuously to improve claims handling…
The council and its members “…are committed to supporting superannuation trustees to continuously to improve claims handling and ensure complaints are processed in a timely and satisfactory manner.”
In addition to meeting ASIC’s regulatory requirements on claims handling “…life insurers have developed and subscribe to the rigorous consumer protection provisions in the Life Code which requires life insurers to efficiently progress claims through their claims management process including regularly communicating to consumers about the status of the claim.”
CALI adds the Life Code Compliance Committee closely monitors the life insurance industry’s application of the Life Code and the conduct of individual insurers.
“It has significant powers to impose sanctions on organisations subscribed to the Life Code, including imposing financial penalties against life insurers.”
The LCCC operates independently of the life insurance industry and is administered by AFCA.
