FSC introduces new mandatory Life Insurance Code of Practice
The Financial Services Council (FSC) has issued a new Life Insurance Code of Practice for its life insurance members.
This would introduce more than 50 additional consumer protections to ensure consumers received the highest standards of service from their insurer.
These included ensuring claimants were supported if they were interviewed, restrictions on the use of surveillance and ensuring consent is genuine for First Nations people.
It would also ban mental health exclusions in newly-designed contracts, a topic that had been previously been raised by the Australian Securities and Investments Commission (ASIC).
FSC chief executive, Blake Briggs, said: “Through consultation with industry, consumer groups, and regulators, the FSC has developed the Life Code to ensure consumers can enjoy the security of life insurance with confidence.
“The Life Code is the industry’s commitment to customers for consistent service standards that cover every aspect of a customer’s journey, from taking out a policy to making a claim, and compliance is monitored by the independent Life Code Compliance Committee.
“The new Life Code includes an enhanced role for the Life Code Compliance Committee by providing the Committee with increased powers to impose sanctions for breaches, including potentially requiring a community benefit payment to a charity.”
It would come into force on 1 July, 2023 which provided the industry with 12 months to transition to the new rules and would be mandatory for the FSC’s life insurance members.
AUTHOR
Laura Dew
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