The Life Insurance Conduct and Disclosure (LICD) Bill is back on the legislative agenda but under a different guise.
The Life Insurance Conduct and Disclosure (LICD) Bill is back on the legislative agenda but under a different guise.
The Bill, which has raised temperatures in the life insurance business for the past five years, has now been formally wrapped into the superannuation choice legislation.
The Choice of Superannuation Funds (Consumer Protection) Bill 1999 is being sold as a consumer protection move, said.
“This bill will strengthen consumer protection in the life insurance industry, enhance the accountability of life companies and brokers, and promote regulatory neutrality by bringing the regulation of life insurance advisers into line with that of securities deal-ers and their representatives,” parliamentary secretary Peter Slipper told parliament.
The measures will promote consumers’ ability to access a range of products and exer-cise choice as to which products best met their needs, Slipper says.
“The measures will also complement existing prudential requirements under the Life Insurances Act 1995, thereby bringing to fruition a process of reforms intended to achieve a modern, flexible and a strong regulatory framework for life insurance.”
Life insurance companies will be forced to set up internal compliance committees to deal with consumer-related issues and ensure a proper system of management controls is in place.
“The reforms will raise industry standards of service and advice,” Slipper says.
“They will give consumers greater confidence when choosing life insurance products and help them choose among a range of products.”
Ends more
