Our report on an insurer breaching the Life Insurance Code of Practice attracted strong reader interest this week…
A life insurer breached the Life Insurance Code of Practice when it failed to tell some customers how their premiums can change in the future and how to access the Code if they make a claim, a Notice of Determination by the Life Code Compliance Committee has found.
The determination says the life insurer attributed the breaches “…to a system problem that prevented it from adding new letter templates with required information to its claims administration system.”
The LCCC notes that as remediation, the life insurer:
- Sent an apology letter to impacted customers with an updated notice
- Wrote to the impacted customers who had made a claim and explained how they can access the Code.
The determination notes that in reporting the breaches the insurer stated that 17 customers were impacted. The breaches related to multiple insurance products that are no longer available.
This committee says the case highlights the importance of life insurers identifying breaches early and acting quickly to minimise customer detriment or harm.
Click here to review the full determination.
Editors Note: We note that while the breach impacted very few policyholders this release from the LCCC serves as a good example of how it monitors and oversees the conduct of life companies subject to its Code.
