Australia’s life insurance industry has welcomed the release of the interim report from the independent review of the Life Insurance Code of Practice and is preparing for potential changes to the standards that govern its dealings with customers. The interim report, prepared by independent reviewer Peter Kell, outlines early findings and recommendations from the first stage of the review and opens a further consultation round on possible amendments to the Life Code. The review focuses on how life insurers deal with customers across product design, sales, claims, and complaints.
The interim report marks the end of the initial phase of the Life Code review, which followed a consultation paper issued in October 2025. The review has been informed by written submissions and consultation with a range of stakeholders, including life insurers, industry bodies, consumer advocates, regulators and government agencies, medical and legal professionals, the Australian Financial Complaints Authority (AFCA), and the Life Code Compliance Committee (LCCC).
In total, the reviewer received 11 public submissions and three confidential submissions, some representing the combined views of several organisations. The interim report groups issues raised in those submissions, identifies areas of broad agreement or concern, and indicates where further input is requested before final recommendations are settled. According to the report, the interim findings are designed to test options and guide the next consultation phase, rather than set the final form of any code revisions.
The report organises its recommendations and consultation questions around several key themes that emerged from the terms of reference and stakeholder feedback. These include:
The reviewer is also seeking further comment on the treatment of mental health exclusions in life policies. This includes feedback on recommendations made in a recent supplementary submission from the Council of Australian Life Insurers (CALI). The interim report includes targeted questions to structure stakeholder responses on this topic.
CALI has noted the release of the interim report and linked the review to how the sector manages its obligations to policyholders. “This independent review is an important part of our industry’s promise and commitment to the people we protect every day. It provides a robust, independent process to hear a broad range of views about how we can continue to ensure our industry lives up to the expectations of the community,” CALI chief executive Christine Cupitt said.
Cupitt said the review was also relevant to how the code keeps pace with legal and regulatory change. “It is critical that the Life Code reflects the needs of our customers, keeps pace with changing laws and regulations, and is practical and easy to understand,” she said. CALI has encouraged Australian customers, intermediaries, industry partners, and other interested parties to participate in the consultation before the deadline.
Kell acknowledged the level of stakeholder input to date and pointed to the code’s role in setting expectations for how life insurers deal with consumers. “I would like to thank all those who contributed submissions and shared their perspectives. The Life Code plays a vital role in supporting consumers in their dealings with life insurers, and this input has been critical in identifying areas where the Life Code is working well and where it can be strengthened. The Interim Report sets out preliminary findings and provides an important opportunity for further feedback to help shape a modern, effective, and consumer-focused Life Code,” Kell said. Stakeholders have been invited to provide feedback on the interim report and the proposed areas for reform by May 8, 2026. That feedback will inform the final stage of the review, with a final report containing recommendations for changes to the Life Code to be provided to CALI by June 30, 2026.
The Life Insurance Code of Practice sets standards that participating life insurers agree to follow in addition to legislative and regulatory requirements. It applies across the policy lifecycle, including product development, distribution, disclosure, claims handling, and complaints management. The code sets expectations for how and when insurers will communicate with customers, how claims decisions will be made and notified, and how complaints will be considered. It also contains provisions for additional support for customers who may be vulnerable, experiencing financial hardship, or living with mental health conditions. Compliance with the Life Code is monitored by the independent LCCC, which reports on industry performance and can impose sanctions and financial penalties where it identifies serious or systemic breaches. The review’s outcomes are likely to affect governance settings, product design, underwriting approaches, and claims and complaints processes, particularly in the areas highlighted in the interim report.
