However, the review falls short on other areas of advocacy, such as breaking down stigmas and discriminatory practices towards sex workers who seek life insurance.
The final report for the Life Code review was released last week, the first since the Council of Australian Life Insurers (CALI) took over responsibility of the code from the Financial Services Council in 2023.
The final report contains 85 recommendations, including:
- Industry commitments and communication on mental health cover and support;
- Support for customers experiencing vulnerability;
- Engaging with First Nations customers;
- Claims handling, including timeframes and communication during claims; and
- The provisions for compliance and enforceability for the Code.
Buried deep in the report, however, are recommendations that could have positive impacts on groups of consumers who often face higher levels of discrimination and obstacles when seeking life insurance.
The first comes in the form of recommending the inclusion of a provision in clause 2.1 that insurers will design products that do not discriminate against consumers based on their sexual orientation, gender identity, or intersex status.
The recommendation references the Victorian Pride Lobby’s 2022 report Worth the Risk, which recommended to the LIC at the time that the Code include a section on vulnerable customers, including LGBTQIA+.
Consumer groups such as the Financial Rights Legal Centre (FRLC) also highlighted that the Code had insufficient and even outdated guidelines regarding the treatment of customers with blood borne diseases such as HIV and hepatitis.
“Despite medical advancements that have dramatically improved life expectancy and health outcomes, people with HIV continue to be denied insurance coverage or offered coverage on substantially less favourable terms, reinforcing stigma and financial insecurity,” the group said in a submission earlier this year.
The FRLC referred back to the Worth the Risk, highlighting that it found only 6 per cent of respondents felt comfortable disclosing their positive status, with another 55 per cent assuming they would be excluded from taking out certain insurance policies.
“These concerns remain despite the advent of antiretroviral drugs, through which HIV can be effectively treated, with thousands of Australians receiving this treatment each year.”
Clearly hearing these concerns, the Life Code report recommended separating out provisions on mental health, family medical history and HIV, update the phrase “human immunodeficiency syndrome” with “human immunodeficiency virus” as well as work with the FSC to remove its HIV/AIDS underwriting guidelines.
“Consumer groups also proposed that CALI should establish a working group to enable insurance providers to collaborate with HIV and hepatitis organisations to implement the requirements of the Code relating to HIV and other blood-borne viruses, including ensuring that assessment processes and risk evaluation questions are as appropriate, relevant, and non-stigmatising as possible,” the report read.
“This, and any other changes to the Code in relation to blood-borne viruses, should be considered by CALI following the completion of the LCCC inquiry and proposals that may come out of that inquiry.”
Absent, however, are recommendations around how to tackle discrimination and the hesitancy sex workers face when trying to obtain life insurance. In fact, there is not a single mention of sex workers within the report.
“Life insurance (and other insurances) can be difficult to obtain for sex workers,” the FRLC has stated on the issue.
“The ‘Worth the Risk’ report found that 83 per cent of respondents who were a current or former sex worker had experienced discrimination or exclusion by an insurance advisor or broker.”
The FRLC also referenced at the time that 70 per cent had experienced intrusive questioning, including about their sexual history, and are subjected to outdated language such as “prostitute” on insurance forms.
Like any form of discrimination in life insurance, this can dissuade many sex workers from applying to life insurance or not disclose their profession on the application, which can lead to legal consequences down the track.
Despite this, the Life Code Review report can be taken as a sign from advocacy groups that professional bodies are willing to listen and work towards making life insurance accessible to as many Australians as possible.
