Life Insurance Industry in Australia Publishes New Regulatory Framework to Strengthen Sector Cohesion

The Financial Services Council (FSC) and the life insurance industry have announced the publication of a new Life Insurance Code of Practice (the Life Code). The new code, titled the Life Insurance Code of Practice, is set to replace the existing version and will come into effect on 1 July 2023.

The Life Code is a set of guidelines designed to improve the standards and practices of the life insurance industry. It outlines specific rules and expectations for the industry to follow, with the aim of enhancing consumer protection and industry transparency.

The new Life Code will provide the industry with a transition period of 12 months to make the necessary changes. During this period, life insurance companies are required to act in the best interests of their customers, provide clear and concise information, and take measures to prevent conflicts of interest.

The Life Code also includes provisions for dispute resolution and complaints handling, ensuring that consumers have a fair and efficient means of addressing any issues that may arise.

One of the key objectives of the Life Code is to set out clear expectations for the life insurance industry in terms of communication with customers. This includes requirements for regular updates, clear and concise policy documents, and easy-to-understand explanations of complex terms and concepts.

The Life Code is not just a set of rules, but a framework for the life insurance industry to operate ethically and responsibly. It is expected that the new code will lead to improved trust and confidence in the life insurance industry, as well as better outcomes for consumers.

Despite the new Life Code providing valuable guidance for the life insurance industry, there is still some uncertainty about the identity of the leadership person or committee at the Financial Services Council responsible for developing the new Life Insurance Code of Practice.

Regardless, the life insurance industry has welcomed the new Life Code as a positive step towards improving industry standards and consumer protection. The new code will undoubtedly have a significant impact on the way life insurance companies operate, and consumers can look forward to a more transparent and ethical industry in the future.

Life Insurance Industry in Australia Publishes New Regulatory Framework to Strengthen Sector Cohesion