We want insurers to deal with the underlying causes of non-compliance.

The Life Code Compliance Committee strengthened accountability for Code compliance and worked with industry to improve customer protections during 2025-26.

Its 2025–26 Annual Report, published yesterday, shows how the Committee responded to serious non-compliance, examined emerging and systemic issues affecting customers across the industry and worked to support improvements in industry practice.

During the year, the Committee sanctioned two insurers for serious non-compliance. One insurer recorded 358 breaches of claims handling commitments, with some customers experiencing delays of more than eight months and more than $160,000 in interest paid to eligible customers. Another insurer collected medical information without valid consent from more than 2,000 customers.

Chair of the Life CCC, Jan McClelland AM, said accountability did not end when a serious breach was identified.

“Sanctions impose formal consequences for serious breaches, but an equally important part of our role is making sure insurers address what went wrong, put things right for customers and strengthen their practices,” Ms McClelland said.

“We want insurers to deal with the underlying causes of non-compliance, so the same problems are less likely to happen again and customer outcomes improve.”

The Committee reviewed 14 significant breaches during the year and also completed three follow-up reviews of previous matters. In all three, insurers had completed the agreed remediation and rectification and addressed the underlying issues.

The Life CCC’s inquiry work also examined how important customer protections were operating in practice and identified opportunities for improvement.

Its inquiry into mental health underwriting found examples of insurers applying broad exclusions rather than using more individualised assessments. A separate review of support for Aboriginal and Torres Strait Islander customers identified opportunities to strengthen culturally safe practices, communication and access to support.

“Our inquiries allow us to examine whether the protections in the Code are working as they should in practice,” Ms McClelland said.

“The issues we identified in mental health underwriting and support for Aboriginal and Torres Strait Islander customers gave insurers clearer expectations for improvement and also provided evidence for broader discussion about future customer protections.”

Industry-wide compliance data also helped the Committee and industry identify areas requiring continued attention. Insurers reported 10,697 Code breaches affecting 27,289 customers, with recurring problems in claims handling, timely benefit payments, customer communication and complaints handling.

The Life CCC used those findings to inform its monitoring priorities and commenced a dedicated claims handling inquiry to examine persistent issues and opportunities for improvement.

“Industry data helps us and industry identify trends, understand where problems are recurring and enables us to focus our work where it can make the greatest difference for industry and customers,” Ms McClelland said.

“Claims remain an important priority because delays, communication and complaints arise at a time when customers are often relying most heavily on the protection their insurance provides.”

The Life CCC brought evidence from its monitoring, investigations and inquiries into the independent review of the Life Insurance Code, highlighting areas including claims handling, mental health, vulnerability and support for Aboriginal and Torres Strait Islander customers.

In 2026–27, the Committee will publish the findings of its claims handling inquiry and continue contributing to the development of the new Code, with a focus on strengthening protections for life insurance customers.

The post Life CCC Annual Report highlights stronger oversight and improved customer protections appeared first on AdviserVoice.

The Life CCC’s latest report highlights areas where insurers are making progress, as well as opportunities to strengthen compliance and improve outcomes for customers.

The Life Insurance Code Compliance Committee (Life CCC) has found fewer breaches reported by insurers, as well as the lowest number of customers affected by breaches since the Life Insurance Code of Practice was first released in 2016.

In its 2024–25 Annual Industry Data and Compliance Report, the Life CCC reports encouraging progress across the industry, with reductions in overall breaches affecting large numbers of customers.

However, the report also found that delays in income protection payments increased over the past year, highlighting ongoing challenges insurers have in meeting important commitments.

Chair of the Life CCC, Jan McClelland AM, said the reduction in customers affected by breaches was encouraging, but sustained improvement depends on insurers addressing the causes of recurring issues.

“It is pleasing to see fewer customers affected by breaches this year, and we hope to see that improvement continue,” Ms McClelland said.

“However, insurers must ensure their systems, controls and oversight are strong enough to prevent repeat issues and support reliable outcomes for customers.”

Breaches related to timely payment of income protection benefits rose significantly, with more customers experiencing delays in receiving payments intended to support them when they are unable to work.

Ms McClelland said timely payments are critical for customers navigating illness or injury.

“Income protection benefits are designed to provide financial stability at a time when customers may be at their most vulnerable,” Ms McClelland said.

“Delayed payments can place additional strain on people who are already dealing with significant personal and financial challenges.”

The report also found that communication processes remain an area requiring focused attention, particularly at the start of claims.

Breaches relating to providing timely initial claims information increased over the reporting period, indicating that some insurers are not consistently meeting expectations for early, clear communication with customers.

“When customers don’t receive timely and clear information at the start of a claim, it can create uncertainty at an already stressful time,” Ms McClelland said.

“Clear communication helps people understand what to expect and supports better outcomes throughout the claims process.”

The Life CCC also highlighted an increase in complaints about Total and Permanent Disability (TPD) claims.

While complaints overall decreased, complaints relating to TPD claims increased and have risen consistently over recent years, reflecting the complexity of these claims and the challenges customers can face when navigating them.

“These claims are often made in difficult and complex circumstances and customers need confidence that insurers’ processes will support timely, consistent and well communicated outcomes,” Ms McClelland said.

“Understanding the drivers of dissatisfaction is an important step in improving both processes and customer experience.”

The Life CCC said the report highlights areas where insurers are making progress, as well as opportunities to strengthen compliance and improve outcomes for customers.

It will continue to work with insurers to support sustained improvements in claims handling, communication and overall Code compliance.

Read the report.

The post Fewer customers impacted by breaches, but claims issues remain a focus for life insurers appeared first on AdviserVoice.

Paul Reid brings almost 50 years’ experience to the role, having worked at KPMG for nearly four decades including as a partner for 25 years. Paul was also a non-executive Director at TAL Life Limited until June 2023.

“Paul is very well respected in our industry after excelling in high-level roles that have consistently strengthened the integrity of the industry and contributed to the way life insurers interact with their customers every day,” said CALI CEO Christine Cupitt.

“We are thrilled to have someone of Paul’s calibre representing our industry on the issues that matter most to the people we serve,” she said.

CALI took over governance of the Life Insurance Code of Practice (Life Code) last year, which delivers tough penalties for conduct breaches and strong independent enforcement.

It sets standards higher than the law to expand Australians’ access to the life insurance protection that suits them when they need it most, in a fair, transparent and accountable way.

The LCCC Industry Representative contributes significantly to achieving these goals and plays a crucial role in ensuring high standards are met across the life insurance industry.

“Life insurance is a valuable and integral part of our society’s approach to protecting community members against the risk of losing their livelihood and the consequent impacts to their families,” said newly appointed LCCC Industry Representative Paul Reid.

“The community and the life insurance industry can only benefit by having a well thought out code of practice that sets benchmarks for the manner in which life insurers operate,” he said.

In recent years, Paul has committed much of his time to pro bono work particularly with organisations that support young Australians, such as the Chain Reaction Foundation.

He has also offered his expertise to Assistance Dogs Australia and St Lucy’s School, to help Australians who are living with a disability.

He replaces Brad Clarke who is returning to consulting, after having contributed to the role of Industry Representative for two years.

“Brad has made a valuable contribution during his time in the role and we thank him for his work” Ms Cupitt said.

“We look forward to working with Paul and thank Brad for his service over the past two years,” said LCCC Chair Jan McClelland AM.

“This role is critical to promoting high standards and better industry practices whether through customer service, claims processing or addressing complaints,” she said.

Paul Reid officially starts in the role of LCCC Industry Representative on 3 June 2024.

The post Experienced financial services leader appointed in critical Life Code role appeared first on AdviserVoice.