The Life Code Compliance Committee’s latest Annual Report highlights that insurers reported 10,697 code breaches affecting more than 27,000 customers, with recurring problems in claims handling, timely benefit payments, customer communication and complaints handling.
The report also says that during the year, the committee sanctioned two insurers for serious non-compliance.
“One insurer recorded 358 breaches of claims handling commitments, with some customers experiencing delays of more than eight months and more than $160,000 in interest paid to eligible customers.
“Another insurer collected medical information without valid consent from more than 2,000 customers.”
The committee’s 2025–26 Annual Report lays out how it responded to serious non-compliance, examined emerging and systemic issues affecting customers across the industry and worked to support improvements in industry practice.
Chair of the Life CCC, Jan McClelland AM, says accountability did not end when a serious breach was identified.
“Sanctions impose formal consequences for serious breaches, but an equally important part of our role is making sure insurers address what went wrong, put things right for customers and strengthen their practices,” she says.
“We want insurers to deal with the underlying causes of non-compliance, so the same problems are less likely to happen again and customer outcomes improve.”
The committee notes it reviewed 14 significant breaches during the year and also completed three follow-up reviews of previous matters. In all three, insurers had completed the agreed remediation and rectification and addressed the underlying issues.
The Life CCC’s inquiry work also examined how customer protections were operating in practice and identified opportunities for improvement.
its inquiry into mental health underwriting found examples of insurers applying broad exclusions rather than using more individualised assessments…
The Committee says its inquiry into mental health underwriting found examples of insurers applying broad exclusions rather than using more individualised assessments. A separate review of support for Aboriginal and Torres Strait Islander customers identified opportunities to strengthen culturally safe practices, communication and access to support.
McClelland says the inquiries allow it to examine whether the protections in the code are working as they should in practice.
“The issues we identified in mental health underwriting and support for Aboriginal and Torres Strait Islander customers gave insurers clearer expectations for improvement and also provided evidence for broader discussion about future customer protections.”
Industry-wide compliance data also helped the committee and industry identify areas requiring continued attention.
…a dedicated claims handling inquiry to examine persistent issues and opportunities for improvement…
Noting the 10,697 code breaches affecting 27,289 customers, reported by insurers, “with recurring problems in claims handling, timely benefit payments, customer communication and complaints handling” the committee says it “…used those findings to inform its monitoring priorities and commenced a dedicated claims handling inquiry to examine persistent issues and opportunities for improvement.”
“Industry data helps us and industry identify trends, understand where problems are recurring and enables us to focus our work where it can make the greatest difference for industry and customers,” she says.
“Claims remain an important priority because delays, communication and complaints arise at a time when customers are often relying most heavily on the protection their insurance provides.”
In 2026–27, the Committee will publish the findings of its claims handling inquiry and continue contributing to the development of the new Life Insurance Code, with a focus on strengthening protections for life insurance customers.
Click here to see the full report.
