The FSC believes its Life Insurance Code of Practice holds insurers to high enough standards in claims handling, and that there is no need to enter another process to introduce more regulation and legislation.
FSC chief executive Sally Loane said in a statement that self-regulation can be implemented much faster than costly and time-consuming legislation, and that further legislation would be unnecessary.
“The code has the capacity to evolve and change with consumer needs, and will deliver consumer benefits in a much more efficient and timely way than waiting for complex legislation," she said.
“The code, which ASIC has acknowledged should improve outcomes for consumers, will be continuously improved and developed.
“Further iterations of the code, for instance, will directly deal with other stakeholders in life insurance including superannuation fund trustees.”
The code introduces clear time frames for claims management and communication updates, and that there are also requirements around decision timeframes to ensure claims are dealt with in a timely fashion, the statement said.
It also said there are rules around the conditions under which insurers can make use of surveillance to verify the legitimacy of claims.
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