The Life Insurance Code Compliance Committee (Life CCC) has revised its approach to overseeing the Life Insurance Code of Practice for the 2024-25 period, shifting its focus toward issues with the greatest impact on policyholders and industry operations.
The committee’s latest annual report details the adoption of a new Impact Framework, which aims to connect compliance monitoring more directly to customer outcomes and sector-wide improvements.
Jan McClelland AM, who chairs the Life CCC, outlined the rationale for the updated approach.
“Proactive, targeted oversight ensures our work delivers lasting benefits for customers,” she said.
She added that the new framework is designed to enhance both transparency and accountability within the life insurance sector.
A significant portion of the Life CCC’s recent activities has centred on inquiries into specific areas of industry practice.
Two major reviews are in progress: one examining how mental health is handled in underwriting, and another assessing the support provided to Aboriginal and Torres Strait Islander policyholders.
“Our inquiries provide important opportunities for reflection and reform,” McClelland said. “They shine a light on practices that can and must improve if insurers are to meet both the letter and the spirit of the code.”
The committee has also initiated a review of claims management processes for sick or injured policyholders. This effort is intended to deepen the committee’s understanding of customer experiences and inform future regulatory expectations.
In the past year, the Life CCC has placed greater emphasis on insurer-led remediation for non-compliance, reserving formal sanctions for the most serious or systemic breaches.
Insurers that present credible plans to address issues are given the opportunity to implement solutions independently, with follow-up audits conducted to ensure commitments are met.
However, in cases where insurers have not met their code obligations, the committee has imposed sanctions. One instance involved an insurer denying applicants’ rights as outlined in the code.
“We will continue to recognise insurers who take ownership of issues, while holding others firmly accountable when they don’t live up to their code commitments to customer protections,” McClelland said.
Findings from the Life CCC’s monitoring and enforcement activities are expected to contribute to the upcoming independent review of the Life Insurance Code of Practice.
McClelland emphasised that accountability, transparency, and trust remain central to the committee’s regulatory role.
“Our role is to ensure that compliance with the Code translates into real, tangible improvements for customers. That’s the standard we will continue to pursue,” she said.
The Life CCC operates independently to monitor compliance with the Code, aiming to maintain consistent service standards and build public trust in the life insurance industry.
The Council of Australian Life Insurers (CALI) has announced that Peter Kell will lead an independent review of the Life Insurance Code of Practice, beginning Oct. 1.
The code sets out mandatory standards for life insurers in areas such as product development, claims handling, and complaint resolution, complementing existing legislative requirements.
The purpose of the review is to ensure the code remains relevant to current consumer expectations, aligns with evolving legal frameworks, and is accessible to both industry professionals and policyholders.
Kell brings a background in financial services regulation, having previously held senior roles at the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). He has also served as CEO of CHOICE and currently chairs the Financial Counselling Industry Fund.
CALI CEO Christine Cupitt said Kell’s experience in regulatory policy and consumer protection would be valuable in the review process.
“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,” she said.
Cupitt also noted that the review will be comprehensive, with input sought from a range of stakeholders including consumers, advocates, regulators, and industry representatives.
“The Life Code is a cornerstone of how the industry commits to treating Australians fairly. 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,” she said.
Kell highlighted the importance of broad consultation in the review process.
“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.
The review is expected to shape the future direction of the Life Insurance Code of Practice, ensuring it continues to meet the needs of both consumers and the industry in a changing environment.
