An independent review of the Life Insurance Code of Practice is underway, with the release of a consultation paper seeking input from a wide range of stakeholders, including industry participants and the general public.
The review, overseen by former Australian Securities and Investments Commission (ASIC) deputy chair Peter Kell, is examining the effectiveness of the code and identifying areas where updates may be required.
The Life Insurance Code of Practice sets out the standards that life insurers in Australia are expected to meet when dealing with customers.
These standards cover the entire customer journey, from product development and sales through to claims management and ongoing communication.
The current review is focused on ensuring that the code remains relevant, practical, and aligned with both regulatory changes and consumer expectations.
Kell emphasised the significance of this consultation phase.
“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.
The consultation paper outlines several key themes for consideration. These include:
Another area under review is how compliance with the code is monitored and enforced.
Feedback is being sought from all interested parties, with submissions open until Dec. 15.
The insights gathered will inform the development of an interim report, which will be released for further consultation in early 2026.
Details on how to participate in the consultation process are available at lifecodereview.org.au/make-a-submission.
In related developments, the Life Insurance Code Compliance Committee (Life CCC) has announced changes to its oversight strategy for the 2024-25 period.
The committee’s latest annual report describes the adoption of a new Impact Framework, which aims to more closely link compliance monitoring with outcomes for policyholders and broader industry improvements.
Jan McClelland AM, chair of the Life CCC, commented on the revised approach: “Proactive, targeted oversight ensures our work delivers lasting benefits for customers.”
She noted that the new framework is intended to promote greater transparency and accountability in the life insurance sector.
The Life CCC is currently conducting targeted reviews in areas with significant implications for customers.
Ongoing inquiries include an examination of mental health considerations in underwriting and an assessment of the support provided to Aboriginal and Torres Strait Islander policyholders.
The committee is also reviewing claims management processes for policyholders experiencing illness or injury, with the aim of enhancing its understanding of customer experiences and shaping future regulatory expectations.
These initiatives reflect a continued effort by both the review panel and the Life CCC to ensure that the Life Insurance Code of Practice remains effective and responsive to the needs of Australian policyholders and the broader community.
