In a statement, FSC chief executive Sally Loane said the Code of Practice is an “industry first” for the life insurance sector and is being developed through “extensive public consultation” with industry stakeholders, consumer groups and regulators.
“The code will commit life insurers to strong standards of customer service, and will enhance consumer protections in the key areas of underwriting and claims,” Ms Loane said.
“The development of industry self-regulation is common across financial services, with the general insurance, banking, customer-owned banking and insurance broking industries all operating similar processes to develop their own codes of practice.”
“The FSC is looking closely at the issues that have arisen within the life insurance industry recently and will consider these in light of the code, which is still under development.”
However, Mr Williams told Risk Adviser that it was “very concerning” that the code was being written by the FSC.
“Wouldn’t you think that if you are in the industry and you are going to write a code of conduct, you would be inclined to protect yourself [and] protect your interests?” he asked.
“That is why I have gotten in the terms of reference for the Senate Economic References Committee inquiry that we look at a code of conduct,” he said.
Mr Williams also stressed that the code of conduct must be mandatory for all life insurers.
According to the FSC, the code of conduct will be discussed in greater detail at the FSC Life Insurance Conference next week.
So Ms Loane has been pushing for the LIF to be passed so that adviser competition can be cut down and more customers forced to go direct to insurers for more basic over priced products with less customer protection as the Comminsure scandal has highlighted but the code of practice is still pending!
Unbelievable arrogance of the FSC.
I agree that the code of practice should not be being written by the FSC who have demonstrated a profit increasing self serving mentality with the LIF but cannot get their own house in order.
wow, the arrogance of the FSC beggars belief! Unless I am sorely mistaken, the key players in the FSC are in fact, the same mobs that keep getting caught out!
So, lets be clear about this, YOUR standards are the ones that need to grow from weak to strong. Stop blaming advisers for YOUR systemic lack of standards and morals.
A pity Sally Loane hasn’t committed to the same public consultation on the LIF. A bit too much to expect, mind you she wouldn’t get the result she wanted
Let’s make one thing very clear – AFA has indicated the Four Corners story involved NON-advised risk policies with CommInsure. Yes the FSC needs to get its act together and quickly. But Royal Commissions and proposing draconian government imposed regulations along with the repetitive reference to “commissions” being the root to all evil…the likes of “Whacker” Williams barely exist in the real world, yet they just love to stick their noses into anything and everything, regardless of the veracity or otherwise of their knowledge and opinions.