Life insurers outline action plan for a stronger Life Code
Cupitt
Australia’s life insurers have set out their action plan to strengthen their commitments to customers under the Life Insurance Code of Practice, following an independent review commissioned by the industry.
The industry has committed to better claims processes, greater clarity for customers about mental ill-health and cover, improved access to information and assistance for First Nations peoples, and stronger independent oversight through upcoming changes to the Life Insurance Code of Practice (Life Code).
The Council of Australian Life Insurers (CALI) commissioned the independent review to test the Life Code’s commitments to customers.
“Australia’s life insurers support a strong, clear, and accountable Life Code that protects people when they need it most,” said CALI CEO Christine Cupitt.
“We initiated this independent review because trusted industries listen, test their commitments, and improve.”
Led by respected consumer and financial services expert Peter Kell, the review made 85 recommendations. The life insurance industry supports the majority of the recommendations, with further work and consultation on more complex recommendations to wrap up in the first half of 2027.
Ms Cupitt said the Life Code must keep pace with changing community needs and expectations.
“We will implement changes to deliver meaningful improvements for the life insurance customers we serve every day and to strengthen the Life Code overall.”
Those changes include:
- Improving how claims processes work in practice
- Offering tailored support earlier to customers experiencing financial difficulties
- Access to a real person with the right knowledge to help during a claim
- Making it easier for First Nations peoples to find information and support
- Stronger privacy and safety protections for people experiencing family and domestic violence
- Clearer, more useful information about what customers are covered for, how much life insurance costs, and how discounts may affect future costs
- Greater accountability, including broadening the powers of the Life Code Compliance Committee
Mental ill-health is one of the biggest social and productivity challenges Australians and their employers are facing today and was a key focus of the Life Code review.
Life insurers will strengthen their support for customers experiencing mental health challenges by embedding mental health commitments into the main body of the Life Code. Clearer, easy-to-understand guides to life insurance and mental health will also be developed with lived-experience input.
“Throughout this process, it is essential customers remain at the centre of all our discussions, particularly those with lived experience,” Ms Cupitt said.
“As we continue to work on final drafting of the updated Life Code, we will be focused on bringing consumer voices, lived experience, specialist expertise, regulators, and our industry together.
“A better Life Code does not mean a longer or more complex Life Code. The real test is the difference it makes for customers.”
