The Financial Services Council (FSC) has voluntarily developed a Life Insurance Code Of Practice to protect customers. The FSC also promotes the Code to customers through its members,
The Financial Services Council (FSC) and the life insurance industry have published a new Life Insurance Code of Practice (the Life Code) which will come into force on 1 July 2023. This will introduce over 50 new important consumer protections that cover every aspect of how customers interact with their life insurer – from the way products are designed, to how they are sold and for those customers who make a claim.
The Life Code is the industry’s commitment to customers for consistent service standards that cover every aspect of a customer’s journey, from taking out a policy to making a claim, and compliance is monitored by the independent Life Code Compliance Committee.
The new Life Code takes effect on 1 July 2023, providing the industry with twelve months to transition and make the necessary systems changes.
The Life Code introduces a range of improved consumer protections, especially when Australians need to claim on their life insurance policy, such as ensuring claimants are supported if they need to be interviewed and further restrictions on the use of surveillance.
There will also be greater support for vulnerable consumers, such as by defining gratuitous concurrence and ensuring consent is genuine for First Nations people, as well banning blanket mental health exclusions in the standard terms and conditions on all newly designed contracts.
The new Life Code includes an enhanced role for the Life Code Compliance Committee by providing the Committee with increased powers to impose sanctions for breaches, including potentially requiring a community benefit payment to a charity.
The Life Code will continue as industry self-regulation and subscription to the Life Code is mandatory for all of the FSC’s life insurance members. The life insurance industry undertakes, however, to engage with ASIC on their intent to have the Life Code registered with ASIC under its Enforceable Code Regime in the future.
To view a copy of the new Life Code, click here and a summary of the enhanced consumer protections can be found here.
This is general information. If you would like to find out more, feel free to contact us for a complimentary review. We can allow for your personal needs, obligations and financial circumstances to give you personal advice.
Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. See our website for our Financial Services Guide. Always read the Product Disclosure Statement issued by an Insurer before considering insurance
