Consumer protections rise under FSC Life Insurance Code

The Financial Services Council (FSC) has confirmed further consumer protections will be included in the new Life Insurance Code of Practice, including guidelines on family and domestic violence as well as new protections in the genetics moratorium. 

Under the new Life Code, life insurers would be required to develop and publish their policy on supporting people experiencing family and domestic violence from 1 July 2023.

The Moratorium on Genetic Tests would also be extended indefinitely and included in the new Life Code.

“The FSC is committed to improving consumer outcomes across the life insurance industry, especially for vulnerable people,” said FSC chief executive, Blake Briggs.

“These guidelines will help industry navigate this difficult and sensitive area, and bring a degree of consistency in how industry supports people experiencing family and domestic violence.” 

Mr Briggs also explained that the FSC and life insurance industry would give immunity to any genetic test taken while the Moratorium on Genetic Tests is in place, meaning that consumers would be able to undergo a genetic test without fear that the result could stop them from taking out life insurance. 

“Extending the moratorium with immunity means consumers who are tested now will never need to share their genetic test results with their life insurer and so won’t be declined for life insurance later,” Mr Briggs concluded.