Life Code transitions from FSC to CALI
The Life Insurance Code of Practice has transferred from the Financial Services Council (FSC) to the Council of Australian Life Insurers (CALI).
The Life Code sets important benchmarks to ensure that people can take out life insurance with confidence that, if the time comes, their life insurer will be there to support them. It covers all aspects of life insurance, from sales practices and timelines to claims handling and making complaints.
Effective from 29 September, CALI will assume responsibility for the Life Code, and become the primary point of contact for code-related matters for industry stakeholders, regulators and policymakers.
For insurance consumers, the independent Life Code Compliance Committee (LCCC), administered by the Australian Financial Complaints Authority, will continue to ensure that the Life Code’s principles are upheld and enforced.
Blake Briggs, chief executive of the FSC, said: “I am proud of the work the FSC has undertaken to deliver the Life Insurance Code of Practice, and the positive impact it has had on life insurance consumers.
“The current version of the Life Code entered into force on 1 July 2023, and expands on the important work completed by the FSC when the original Code of Practice was released in 2017.
“As the landscape of industry representation has evolved in the last few years, it has become evident that transferring the Life Code to CALI is the appropriate step forward, and we are confident that life insurers will be well-served by the new association’s responsibility for the Life Code.”
He added: “The FSC will continue to be a leading voice in related policy debates, including financial advice and the increased political and regulatory scrutiny surrounding group life insurance in superannuation.
“Our ongoing involvement in insurance-related policy reflects our commitment to safeguarding the interests of consumers and ensuring that the financial services industry remains responsive to consumers’ needs.”
CALI was formed last year after 19 life insurers broke away from the FSC to form their own association, with Christine Cupitt as chief executive.
Welcoming the announcement, Justin Delaney, chief executive of Zurich Australia and New Zealand and a member of CALI, said: “The Code represents the life insurance industry’s commitment to protecting customers and continually evolving. As the peak body for life insurers, CALI’s ownership of the Code further underlines this commitment.
“At Zurich, we take acting in the best interests of our customers seriously and we support maintaining an industry-wide approach that holds all insurers to a high standard. The Code impacts all facets of our customer interactions, from how products are designed and sold, through to the claims experience.”