The Financial Services Council (FSC) has announced the release of the second draft of the life insurance code of practice for public consultation before it will be submitted for registration under the Australian Securities and Investments Commission (ASIC) new code regime.
The revised draft of the life insurance code of practice (2.0) included the feedback from the first consultation draft along with recommendations from the Parliamentary Joint Committee on Corporations Financial Services inquiry as well as ASIC’s reviews, Productivity Commission reports and feedback from consumer advocates.
The new code, which would be mandatory for all FSC’s life insurance members, would be governed by the independent Life Code Compliance Committee.
“We have had the code independently re-structured and re-written by plain English experts to ensure that the code is as easy to read and as easy to navigate for everyday Australians as possible,” FSC chief executive, Sally Loane, said.
“The FSC appreciates the consultative approach taken over recent months by consumer groups which has helped us develop a stronger and more consumer-focused code.”
The first code originally came into effect on 30 June, 2016, binding all life insurance FSC members to minimum standards of service for consumers for the first time. Additionally, the code covered all new policies taken out in Australia as all life insurers issuing new policies in Australia are FSC members.
“I am proud of the current Life Insurance Code of Practice and of the industry’s enthusiasm to adopt it, but we recognise that codes can always be further improved, and that’s what this version sets out to do,” Loane said.