FSC calls for 'swift passage' of LIF through parliament

In a statement, Ms Loane said the FSC supports the bill to reform life insurance advice, adding that its provisions are a "step in the right director" in removing "conflicts" from the industry.

"The relevant legislation has bipartisan support and is currently before the parliament. We urge swift passage in the [next] sitting week," she said.

As part of the legislation, the FSC will introduce a code of practice for life insurers to adhere to, Ms Loane added.

"The Life Insurance Code of Practice will introduce new binding standards for life insurance companies and will be implemented in July 2016," she said.

"The Code, which is still under development, has involved working closely with regulators, consumer advocates and the industry to set standards for selling insurance, claims handling and assisting vulnerable customers."

Ms Loane added that the life insurance reforms are also being supported by separate reforms to increase adviser education and professional standards.

"This will serve to strengthen advisers and the advice profession," she said.

"Under the proposals, new advisers will be required to complete a university degree, an exam, a professional year and be subject to a code of ethics and undertake continuing professional development."