The Life Insurance Code Compliance Committee (Life CCC) has called on Australian life insurers to adjust their approach to cultural safety and communication with Aboriginal and Torres Strait Islander customers, following a review of current industry practice.
The review covered three large life insurers that together write about two-thirds of the Australian life insurance market. It assessed how those insurers are putting into effect the commitments introduced in the 2023 Life Insurance Code of Practice, with a specific focus on support for First Nations customers.
The committee found that insurers have begun to change processes for Aboriginal and Torres Strait Islander policyholders but also identified gaps that may limit access to fair, culturally safe, and accessible services. The findings have implications for life insurance executives, product teams, and compliance and distribution leaders as the industry prepares for the next phase of code reform.
A central issue raised by the Life CCC was how insurers identify and record whether a customer is Aboriginal and/or Torres Strait Islander. The three insurers reviewed were not routinely asking customers if they identify as Aboriginal or Torres Strait Islander, nor consistently explaining why that information is collected and how it will be used. According to the committee, this limits insurers’ ability to provide tailored support, such as directing customers to staff with relevant training, using claims processes that take cultural considerations into account, or offering alternative communication channels that respond to community preferences.
The review also found that online resources aimed at Aboriginal and Torres Strait Islander customers were not easy to locate from insurers’ main customer pages. The committee said this could make it harder for First Nations customers to find targeted information, understand available options, and access support channels. It recommended more dedicated and prominent website content designed for these customers.
Life CCC chair Jan McClelland AM said the findings show a continuing need for insurers to align internal processes and staff capability with the expectations in the code. “Insurers must do more to ensure insurance services are accessible, culturally safe, and inclusive for Aboriginal and Torres Strait Islander customers,” she said.
McClelland said communication methods and process design are key factors for customers. “When insurers communicate clearly and design their processes with cultural needs in mind, they create safer environments where customers feel supported and informed,” she said.
McClelland also linked cultural capability to the way insurers interact with First Nations customers over time. “Insurers that build cultural competence across their business are better equipped to understand the experiences of Aboriginal and Torres Strait Islander people. This supports fairer outcomes and strengthens trust,” she said.
The report recommends that life insurers work with Aboriginal and Torres Strait Islander-controlled organisations when developing customer communications, designing identification processes, and delivering staff training. For insurers, this may include reviewing onboarding scripts, claims interactions, and vulnerability frameworks to incorporate local community input.
The Life CCC said the issues and opportunities identified in the review will shape its recommendations for the upcoming review of the Life Insurance Code of Practice. The committee indicated that key areas of focus will include transparency for customers, safe approaches to self-identification, and consistent support across sales, underwriting, and claims processes.
The committee said its recommendations are intended to help insurers meet existing code obligations and improve outcomes for Aboriginal and Torres Strait Islander policyholders. For compliance and risk teams, the findings may lead to closer review of how cultural safety measures are documented, monitored, and reported within governance structures.
The Life CCC’s work is taking place while a separate, independent review of the Life Insurance Code of Practice proceeds. A consultation paper has been released seeking submissions from life insurers, intermediaries, consumer groups, and the wider public on how the code is operating and where changes may be needed.
The review, led by former Australian Securities and Investments Commission (ASIC) deputy chair Peter Kell, is examining whether the code remains aligned with regulatory developments and consumer expectations. The code sets standards for insurer conduct across the customer life cycle, including product design, distribution, disclosure, claims handling, and ongoing communication.
The review is also looking at whether current arrangements for monitoring and enforcing compliance with the code are sufficient, or if adjustments are required to improve accountability and oversight. Submissions on the consultation paper are open until Dec. 15. Feedback received will inform an interim report, which is expected to be released for further consultation in early 2026.
