The Life Code Compliance Committee (Life CCC) welcomes the announcement of additional consumer protections for the Life Insurance Code of Practice (the Code).
The Financial Services Council (FSC) announced the first industry-wide guidelines on family and domestic violence for life insurance. From July 2023, under the new Code, life insurers must develop and publish their policy on supporting people experiencing family and domestic violence.
It also announced new protections in the genetics moratorium. The moratorium, which began on 1 July 2019, limits the use of genetic test results when assessing applications for life insurance. It was scheduled to last until at least 30 June 2024.
The new Code will extend the moratorium on genetic tests indefinitely, taking effect from July 2023. This means people will be able to undergo a genetic test without fear that the result could prevent them from taking out life insurance.
Chair of the Life CCC, Jan McClelland AM, was pleased with the protections and the outcomes for consumers.
“The announcement from the Financial Services Council about the additional consumer protections is a great development for consumers,” she said.
Ms McClelland recognised the benefits of having the protections added to the Code.
“Both additions are significant for thousands of consumers, and it is important that the Code has oversight now.
“With the Committee’s power to sanction, adding these protections to the Code is a meaningful step that will benefit consumers greatly.” she said.
The new Life Code will be in full effect from 1 July 2023, with subscribers now in a transition period to prepare for it. It enhances the role of the Life CCC by conferring greater powers to impose sanctions and provides greater consumer protections.
See the Financial Services Council announcement of the additional consumer protections.
About the Life Insurance Code Compliance Committee (Life CCC)
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.
The Code of Practice set good standards of practice for life insurance firms when dealing with consumers on matter of life insurance.