Council of Australian Life Insurers (CALI) chief executive Christine Cupitt said the review was an important opportunity to hear a broad range of views from the community, consumer advocates, and regulators.
“The Life Code is central to continued trust between life insurers and the Australians they protect,” Cupitt said.
“For the Life Code to remain strong, relevant, and trusted, it must continue to meet the needs of Australians, keep pace with regulatory change, and reflect what the community expects from our industry.”
According to CALI, its submission supports evolving the Life Code to provide the right protections in “an accessible, understandable way”.
For CALI, this must include protections for people experiencing vulnerability, financial hardship, or mental ill-health.
“The submission also highlights areas where clearer language, simpler structure, and better alignment with the law could improve understanding, consistency, and confidence for customers, without reducing existing protections,” it said.
The Life Code establishes enforceable standards that life insurers agree to uphold to guarantee that customers can confidently purchase life insurance, knowing that their insurer will provide assistance when needed. It encompasses all aspects of life insurance.
CALI assumed responsibility of the Life Code in 2023, taking over from the Financial Services Council.
According to the consultation paper for the review, the code is due for “formal independent review in 2025 and at least every three years after that.
“Regular independent reviews are important to ensure the Code continues to meet evolving community standards and expectations,” it said.
The last time the Life Code was reviewed was in 2018, with the revised Code being published in June 2022 and taking effect on 1 July 2023. The review’s consultation paper states that there are also several law reforms processes underway that may impact Life Code.
These include:
Mandatory service standards for super funds– Large APRA‑regulated superannuation funds will face enforceable service standards targeting areas where complaints are highest, including the fair and efficient processing of insurance claims.
Genetic testing ban in life insurance– the government has released draft legislation to ban the use of genetic test results in life insurance underwriting, a move aimed at protecting consumers from discrimination.
Delivering Better Financial Outcomes reforms– Proposed reforms to financial advice laws that will allow institutions such as life insurers to provide simple, product-specific advice directly to customers, expanding access to financial guidance.
Disability Discrimination Act review– A government review will examine the exemption in section 46 of the DDA, which currently allows insurers to refuse coverage to people with disabilities when decisions are reasonably based on relevant data.
