{"id":83055,"date":"2026-06-30T16:01:16","date_gmt":"2026-06-30T06:01:16","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=83055"},"modified":"2026-07-03T09:52:26","modified_gmt":"2026-07-02T23:52:26","slug":"independent-review-calls-for-85-life-code-reforms","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2026\/06\/30\/independent-review-calls-for-85-life-code-reforms\/","title":{"rendered":"Independent Review Calls for 85 Life Code Reforms"},"content":{"rendered":"

The independent review of the Life Insurance Code of Practice has recommended 85 changes to strengthen consumer protections.<\/p>\n

Prepared by independent reviewer Peter Kell<\/strong>, he says the majority of the recommendations require changes to the Code, while others recommend actions by insurers, CALI, and the Life CCC to support the operation of the Code and improve consumer outcomes.<\/p>\n

\"Peter
Peter Kell.<\/figcaption><\/figure>\n

It says the Code should contain standards that ensure consumers experiencing mental health conditions are treated fairly and transparently while enabling insurers to respond to well established sustainability challenges.<\/p>\n

Other recommendations are that the Code prohibit insurance policies that automatically exclude cover for all mental health conditions, including policies that allow customers to opt out of mental health cover entirely.<\/p>\n

Clause 2.1(b) of the Code currently states that insurers, when designing new products, will not incorporate a blanket exclusion specific to mental health in the general terms and conditions of the standard form contract. However, this does not apply to group policies or products designed to cover specific conditions such as trauma and critical illness policies.<\/p>\n

It also recommends insurers review any standard form limitations on mental health cover at least every three years and that CALI establish a process with stakeholders to develop principles and guidance relating to mental health cover and product design.<\/p>\n

Underwriting<\/strong><\/p>\n

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Download the full report.<\/figcaption><\/figure>\n

The review also recommends changes to underwriting where insurers decline cover or offer cover on non-standard terms.<\/p>\n

It says insurers should provide those decisions in writing, explain the reasons for the decision based on what the applicant disclosed, provide applicants with an opportunity to correct information, and align the information provided when alternative terms are offered.<\/p>\n

It also recommends insurers provide, on request, a plain English summary of the actuarial, statistical, or other relevant data relied upon in making the underwriting decision.<\/p>\n

The report also recommends:<\/strong><\/p>\n