FSC introduces new mandatory Life Insurance Code of Practice

The Financial Services Council (FSC) has issued a new Life Insurance Code of Practice for its life insurance members.

This would introduce more than 50 additional consumer protections to ensure consumers received the highest standards of service from their insurer.

These included ensuring claimants were supported if they were interviewed, restrictions on the use of surveillance and ensuring consent is genuine for First Nations people.

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It would also ban mental health exclusions in newly-designed contracts, a topic that had been previously been raised by the Australian Securities and Investments Commission (ASIC).

FSC chief executive, Blake Briggs, said: “Through consultation with industry, consumer groups, and regulators, the FSC has developed the Life Code to ensure consumers can enjoy the security of life insurance with confidence.

“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 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.”

It would come into force on 1 July, 2023 which provided the industry with 12 months to transition to the new rules and would be mandatory for the FSC’s life insurance members.

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From what I have seen, the Life Insurance companies ignore the code when it comes to claims. There needs to be an independent body and a mandated code. They are a lawless rabble

Sounds like someone missed the memo?.

The big life companies are setting up their own body and distancing themselves from the FSC.
So what is the FSC's next move?
Maybe trumpet a code for members it no longer has on the books.
Well at least by 30 June 2023.

The actions of the FSC seem too be more imponderable as times go on.

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