CALI appoints Peter Kell to spearhead life insurance code review
The Council of Australian Life Insurers (CALI) has appointed former deputy chair of the Australian Securities and Investments Commission (ASIC), Peter Kell, to conduct an independent review of the Life Insurance Code of Practice (Life Code).
Set to commence from 1 October, the review will confirm the Life Code remains up-to-date and in alignment with the insurance needs of Australians and related laws and regulations, as well as clear and straightforward.
“The Life Code is a cornerstone of how the industry commits to treating Australians fairly,” CALI chief executive, Christine Cupitt, said.
“This review is an important opportunity to hear from the community, consumer advocates, regulators, and the industry to ensure the Code remains strong, relevant, and trusted.
“Peter Kell is uniquely qualified to lead this review. Peter’s deep expertise in industry codes and self-regulation, together with his clear commitment to improved consumer outcomes in financial services, will be invaluable in strengthening the Life Code for the benefit of customers and the life insurance industry alike.”
Kell boasts over 20 years of senior leadership experience in financial services regulation and policy, having previously held the positions of Deputy Chair of both ASIC and the Australian Competition and Consumer Commission (ACCC) and CEO of consumer advocacy group, CHOICE. Kell is currently the Chair of the Financial Counselling Industry Fund.
“Broad feedback will be critical to the success of the review and will help ensure the Life Code evolves to meet emerging challenges,” he said.
Australian life insurance company, Zurich Australia, welcomed CALI’s announcement of the review.
“The Code plays an important role in holding insurers to a high standard with our customers across the entire process, from how products are designed and sold, through to the claims experience,” Justin Delaney, Chief Executive Officer at Zurich, said.
“The decision to review the Code and the industry’s intention that it be registered with the regulator underline’s a commitment to continually improving and achieving positive customer outcomes.
“Zurich looks forward to working with Mr Kell and the broader industry on this important task and contributing to evolving the critical safeguards the Code provides to customers.”
According to Zurich’s statement, the Life Code was last revised and updated in 2023, making a range of changes to sales, underwriting, premium disclosures, claims, mental health, vulnerable customers, sanctions, and clarity on navigating the Code, as well as introducing new enforceable provisions.
Once the review gets underway, a consultation paper will be released on 17 October and submissions from the public will be welcomed until 15 December. The final report is scheduled to be delivered to CALI by 30 June 2026, before it will be made available to the public later next year. This will allow for the new Life Code to be implemented by 1 October 2027.
The code is a complete and utter failure for consumers. It is heavily weighted in favour of the life insurance companies, and they ignore it anyway. Speak to any financial adviser who helps consumers with claims and they will tell you the code is a farce.
I doubt Kell will improve anything for consumers. Remember REP413? He is the one who was responsible for it. He is the one who who promoted it, including an appearance on ABC Lateline on the day it was released. This is where the damaging changes to life insurance all began.
Lets not forget, the ‘research’ involved ASIC working with life insurance companies to identify and target high volume insurance writers. This will have heavily biased the report towards those suspected of churning. They then promoted the findings as being representative of the entire profession. Imagine if a university conducted research like this? The grossly misleading executive summary (which failed to mention this important fact, which was buried later in the document) was picked up by the broader media and used to shame and damage trust in financial advisers. It was the catalyst for Trowbridge and LIF, and was one of the key reasons for involving financial advisers in the RC. The irresponsible changes which followed have left consumers without affordable advice and seen insurance premiums go through the roof.
Kell is probably the last person I would appoint to this position to advocate for consumers.
What a great choice. It was clear that LIF was an attack on advisers that blew up in insurers faces when they finally realised that consumers would not buy insurance directly from them. So in a time when it is critical that insurers involve advisers in reviving the insurance industry they appoint an adviser hating ex ASIC employee.
Seriously, Peter Kell, when he was at ASIC, he presided over the fraudulent ASIC 413 report. This led to the Trowbridge report and the destruction of the Life Insurance industry as we know it. Come on CALI you can do better than this.