The Life Insurance Code of Practice demonstrates the life insurance industry’s commitment to improving standards and strengthening consumer protections.
Life Insurance Code of Practice regime commences
By FSC CEO Sally Loane
I am proud to report that Saturday marked the start of the new Life Insurance Code of Practice regime, which was strengthened ahead of its launch with a foundation of new minimum standard medical definitions for cancer, heart attack and stroke for use in trauma/critical illness policies.
The new definitions have been developed with the assistance of medical professionals and will be under continual review to ensure they are in keeping with advancements in medical science. Their development is an important foundation in ensuring consumers can have confidence in the Life Insurance Code of Practice.
The document is a clear declaration of the level of service consumers can expect from life insurers, in language they can understand.
It covers all aspects of interactions with consumers from product design, buying insurance, regular communications and making claims. The Code requires insurers to improve disclosure to customers, provide greater transparency in communications, decide claims within set timeframes, limit the use of surveillance and provide additional support for vulnerable consumers.
LCCC appointed
As well as the new standard medical definitions, the FSC is pleased to announce that the Life Code Compliance Committee (LCCC), the independent body responsible for ensuring member compliance with the Code, has also been appointed. Administered by the Financial Ombudsman Service, the Committee comprises former Australian Law Commission President and former Chair of the Australian Press Council, Professor David Weisbrot, industry veteran David Goodsall and Alexandra Kelly, consumer advocate and the Principal Solicitor of the Financial Rights Legal Centre.
I welcome the appointments to the LCCC and look forward to working closely with them in ensuring the Code delivers on its promises to consumers.
The Life Insurance Code of Practice demonstrates the life insurance industry’s commitment to improving standards and strengthening consumer protections.
My team and I at the FSC are very proud to have been involved in its production.
I would like to thank everyone who was involved in taking the industry forward to this point, especially our life insurance members who worked with us so enthusiastically during a challenging time for their industry.
Leaders Summit
The best way to learn more about your FSC and policy initiatives like the Code of Practice is attend to our annual Leaders Summit, which is just three weeks away now. Some tickets are still available. Get them here.