CALI aims to control Life Code from September

Mike Taylor

Managing Editor/Publisher, Financial Newswire

3 July 2023

The Financial Services Council (FSC) appears to have delivered its last round of updates to the Life Insurance Code of Practice with the Council of Australian Life Insurers (CALI) asserting that it will be taking control by 30 September.

CALI chief executive, Christine Cupitt acknowledged the latest updates to the Life Code and the work of the FSC but added that her organisation had been working closely with the FSDCO to transition governance by 30 September.

The major life insurers last year parted company with the FSC and established CALI with responsibility for the Life Code representing one of the major components requiring a negotiated transfer.

The FSC chief executive, Blake Briggs announced the updates to the Life Code and Cupitt later issued a statement welcoming what she said would deliver higher standards and stronger consumer protections.

“Australian life insurers have listened to the needs of their customers and the community by developing an updated Life Code that sets a higher bar for the industry,” Ms Cupitt said.

“The new Life Code will deliver better outcomes for Australians, tougher penalties for conduct breaches and strong independent enforcement.”

Each of CALI’s 19 members are subscribed to the Life Code. The updated version has 50 additional consumer protections including:

• increased support for customers experiencing vulnerability or financial hardship
• guidelines for the development of family violence policies
• the removal of blanket mental health conditions
• more transparency around underwriting decisions
• an extension of the moratorium on genetic testing
• stronger powers for the Life Code Compliance Committee (LCCC)*.

The LCCC, which closely monitors the life insurance industry’s application of the Life Code and the conduct of individual insurers, will have increased powers to impose sanctions and financial penalties on organisations subscribed to the Life Code. These measures have been developed in conjunction with consumer groups to ensure they are appropriately robust, Cupitt’s statement said.

“With this newly updated Life Code, our members can continue to deliver the protection and certainty Australians need on their best and worst days,” she said.