Compliance committee welcomes publication of new Life Code
30 June 2022
The independent committee that monitors compliance with the Life Insurance Code of Practice welcomed the publication of a new code, to take effect in a year’s time.
The new code includes a range of additional consumer protections as well as increased powers for the Life Code Compliance Committee (Life CCC) to impose sanctions for breaches.
The owner and publisher of the code, the Financial Services Council (FSC), said the new code would take effect on 1 July 2023, allowing a 12-month transition.
“The new code enhances the role of the Life CCC by giving us increased powers to impose sanctions, including potentially requiring a life insurer to make a community benefit payment to a charity,” the committee’s Chair, Jan McClelland AM, said.
Under the new code, the community benefit payment can be as high as $100,000 for some significant breaches.
This extends the existing sanctions that the committee is able to apply, such as ordering a life insurer to take steps to fix a Code breach, or requiring a life insurer to make public a Notice of Sanction on its website.
“We welcome life insurers’ ongoing commitment to the Code of Practice, which protects consumers and promotes high standards in the industry,” Ms McClelland said. “We are also pleased to have a new sanction available should it be required.”
About the Life Insurance Code Compliance Committee (Life CCC)
About the Codes of practice set standards of good industry practice for financial firms when dealing with current or potential individual and small business customers. The Life CCC is an independent committee that monitors, enforces and reports on compliance with the Life Insurance Code of Practice. It works collaboratively to improve code standards and promote industry best practice.