FSC unveils new life code

In a statement, the FSC said it had released a second draft of the Life Insurance Code of Practice incorporating feedback from its first round of consultations, recommendations from the parliamentary joint committee and a number of other recent inquiries and reviews.

“The code, which is mandatory for all FSC’s life insurance members and will be governed by the independent Life Code Compliance Committee, has been reviewed line by line and letter by letter from the starting point that every clause can be improved,” FSC chief executive Sally Loane said.

“We have had the code independently re-structured and re-written by plain English experts to ensure that the code is as easy to read and as easy to navigate for everyday Australians as possible.”

Key changes to the second iteration of the code include the introduction of a dedicated mental health section summarising relevant protections, the inclusion of a moratorium on genetics testing, strengthening protections for vulnerable consumers and around surveillance of claimants.

Ms Loane noted particular input from consumer groups that had “helped us develop a stronger and more consumer-focused code”.

“The FSC is pleased to present this version for a final public consultation before we submit the code for registration under ASIC’s new enforceable code regime,” she said.

The code first came into effect in 2016 and covers all life insurers in the Australian market.

“I am proud of the current Life Insurance Code of Practice and of the industry’s enthusiasm to adopt it, but we recognise that codes can always be further improved, and that’s what this version sets out to do.

“We look forward to working with all stakeholders to ensure the Code gives consumers the confidence to get life insurance and trust that it will work as they expect and when they need it.”

The new draft is open for consultation until 29 September.