The Financial Services Council (FSC) has urged a Parliamentary Committee not to push for further legislation in the life insurance industry in circumstances where self-regulation should suffice.
The FSC has lodged a new submission with the Parliamentary Joint Committee on Corporations and Financial Services claiming its Life Insurance Code of Practice has introduced standards high enough to obviate the need for more regulation or legislation.
In doing so, the FSC has countered a submission from the Australian Securities and Investments Commission (ASIC) seeking greater powers to deal with claims handling disputes in the life sector.
FSC chief executive, Sally Loane emphasised the direction of her organisations submission stating that "self-regulation can be implemented much faster than costly and time-consuming legislation".
"The Code has the capacity to evolve and change with consumer needs, and will deliver consumer benefits in a much more efficient and timely way than waiting for complex legislation," she said.
Loane claimed the life insurance industry had demonstrated it is committed to changes which benefit consumers via the Trowbridge processes and more recently the development of the code.
Further, she said ASIC had acknowledged that the code was likely to improve outcomes for consumers.