In a statement, the FSC said it had released a second draft of the Life Insurance Code of Practice incorporating feedback from its first round of consultations, recommendations from the parliamentary joint committee and a number of other recent inquiries and reviews.
“The code, which is mandatory for all FSC’s life insurance members and will be governed by the independent Life Code Compliance Committee, has been reviewed line by line and letter by letter from the starting point that every clause can be improved,” FSC chief executive Sally Loane said.
“We have had the code independently re-structured and re-written by plain English experts to ensure that the code is as easy to read and as easy to navigate for everyday Australians as possible.”
Key changes to the second iteration of the code include the introduction of a dedicated mental health section summarising relevant protections, the inclusion of a moratorium on genetics testing, strengthening protections for vulnerable consumers and around surveillance of claimants.
Ms Loane noted particular input from consumer groups that had “helped us develop a stronger and more consumer-focused code”.
“The FSC is pleased to present this version for a final public consultation before we submit the code for registration under ASIC’s new enforceable code regime,” she said.
The code first came into effect in 2016 and covers all life insurers in the Australian market.
“I am proud of the current Life Insurance Code of Practice and of the industry’s enthusiasm to adopt it, but we recognise that codes can always be further improved, and that’s what this version sets out to do.
“We look forward to working with all stakeholders to ensure the Code gives consumers the confidence to get life insurance and trust that it will work as they expect and when they need it.”
The new draft is open for consultation until 29 September.
Life companies slashed commission rates to advisers in 9 months, but have taken five years to write an insurance code that was in the same set of recommendations.
These companies and executives are very quick to blame advisers but show no accounatbility for their very poor behaviour.
Another Code? Just what we needed. We have a pandemic where people are suffering and stressing but the bureaucrats continue increasing their portfolio of rules and regulations. Can’t wait until October 1st. Guess what new rules and regulations come into affect.
Who cares now? This industry is busted beyond repair. It’s done.
ASIC through its conflicted interest, clueless Federal Government MP’s who only engage when there’s something in it for them personally, FASEA’s irrelevant and useless academics and even life insurance companies themselves with their greedy Senior Execs have all played their intended roles in dismantling this industry beyond repair, for their own benefits – not consumers and not advisers.
There is NO coming back from what they’ve all managed to do the last 5-8 years because no one wants that to happen. That’s 100% clear and 100% fact.
No-one bar the advisers and the consumers want it working it cohesively. Its an utter disgrace but that fact.
Its all about greed and corruption at the highest levels. Aah well, it was fun while it lasted.
Can you explain what benefit the “greedy Senior Execs” have to “intentionally dismantle this industry”?