According to the Council of Australian Life Insurers (CALI), the Life Insurance Code of Practice (Life Code) should be amended to support trust in the sector and maintain consumer protections as part of the current independent review. In its submission, CALI said the code needs to remain workable while clearly setting out how life insurers should deal with customers across the policy lifecycle.
CALI’s response to the Life Code review describes the process as a way to assess whether the code is operating as intended and whether it continues to reflect regulatory settings and community expectations. The council argues that the code should evolve rather than be replaced, with adjustments directed at clarity, structure, and usability while keeping the current level of consumer protections. CALI chief executive officer Christine Cupitt said the code is an important part of how life insurers deal with policyholders. “The Life Code is central to continued trust between life insurers and the Australians they protect. 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,” Cupitt said.
The submission highlights provisions affecting people experiencing vulnerability, financial hardship, or mental ill-health and calls for clearer guidance to insurers on how to respond in those circumstances. CALI’s submission also refers to potential changes to simplify the structure of the code, use plainer language, and align provisions more closely with existing legal obligations. The council said these changes are intended to keep existing protections in place while making the code easier to understand and apply for customers and insurer staff.
The Life Code is an industry code that participating life insurers agree to follow in addition to their statutory obligations. It sets enforceable standards for how customers are treated over the life of a policy. The code applies across key stages of the policy lifecycle, including:
By setting out these standards, the code establishes expectations for insurer conduct and customer treatment when dealing with a subscribing life insurer. Compliance is monitored through a formal framework, and identified breaches can lead to remediation or other corrective actions.
The independent review of the Life Code is being led by former Australian Securities and Investments Commission (ASIC) deputy chair Peter Kell. The review is assessing whether the code is achieving its stated objectives, remains workable for insurers to implement, and reflects current laws and community standards.
In October, the review released a consultation paper seeking feedback from stakeholders and the public on how the code is operating and where changes may be required. The paper sets out several themes for comment, including:
Kell said the consultation is intended to capture the experience of those who use and rely on the code. “The code plays a vital role in setting clear expectations for how life insurers interact with their customers. This review is an opportunity to hear directly from customers and organisations who use, rely on, and are affected by the Life Code,” he said.
Submissions on the consultation paper closed on Dec. 15. Feedback from life insurers, consumer organisations, regulators, and other stakeholders will inform an interim report, which is expected to be released for further consultation in early 2026. For Australian life insurers and intermediaries, the outcomes of the review may influence expectations around product governance, distribution oversight, treatment of vulnerable customers, claims processes, and staff training. CALI’s focus on consumer protections, vulnerability, and clearer operational guidance points to areas where code requirements and supervisory attention could change once the next version is finalised.
