Share your views on the draft Life Insurance Code of Practice 2.0.
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Life Insurance Code of Practice (Code) 2.0
Now that the FSC has finalised the Code for consultation, we would like to thank the many stakeholders, especially the consumer groups, who have helped us get to this point.
The next step is to hear from interested parties who are willing to share their views with us (by 29 September). You can download the consultation draft of the Code and provide feedback here.
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More affordable products are on the way
We are expecting a new range of more affordable, sustainable individual income protection products to be available from October 2021.
The FSC is continuing to work with members to explore further ways to develop more affordable and sustainable options for customers with these products, and for other living benefits too, such as total permanent disability, and trauma/critical illness cover.
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Other changes are coming too
People taking out life insurance will find it less onerous from 5 October when the new ‘Duty to Take Reasonable Care’ change takes effect. Your life insurer will include information on their application to explain what customers need to do.
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Design and Distribution Obligations (DDO)
The FSC has been working with members to seek relief from the DDO requirement for the consumer-initiated reissue of life insurance products that are essentially administrative in nature. For example, where a customer asks to reinstate their cover shortly after it is cancelled due to non-payment of premiums (say, because the customer’s credit card reached its expiry date) it’s in everyone’s interest to make this quick and easy.
We hope this work will ensure that life insurers will continue to be able to fulfil straightforward customer requests in a timely way.
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