Skip to content
Insurance

Working to ensure a smooth transition to the new Code of Practice

Life Code Compliance Committee 2 mins read

The Life Insurance Code Compliance Committee (Life CCC) prioritised supporting a smooth transition to the new Code of Practice in 2022-23, according to its Annual Report.  

The Annual Report 2022-23, published today, noted how the work of the Life CCC helped life insurers to proceed with clarity in aligning systems, processes and practices to new obligations in the Code.  

The new obligations and additional consumer protections came into effect on 1 July 2023. 

Jan McClelland AM, Chair of the Life CCC, spoke of the importance of providing such support to life insurers. 

“I am confident that we have done all we can to provide support and guidance on the new Code. This allowed life insurers to focus on improving their practices and meeting the new obligations without any uncertainty,” Ms McClelland said. 

“It is often uncertainty about obligations – questions of interpretation, practical application – that leads to more breaches and poorer outcomes for customers. But we provided a clear understanding of expectations for insurers and, by extension, a clear understanding of expectations for customers.” 

The Annual Report also highlights the Life CCC’s significant work on investigations in 2022-23. The Life CCC reviewed 236 possible breaches of the Code and confirmed 79 breaches, including 35 significant breaches. 

Ms McClelland praised the efforts, emphasising the importance of investigations on Code compliance. 

“We got through an impressive number of investigations in 2022-23. Our investigations are vital for uncovering serious or systemic issues. They are a fundamental element in driving improved practices,” Ms McClelland said.  

The Annual Report also noted the Life CCC’s new Benchmark Reports, which provide insurers with crucial insights into compliance with the Code. 

Each shows a life insurer its compliance with the Code in an industry-wide context, which can help it target areas for improvements.  

"Providing insurers with reports that allow them to measure their compliance against industry benchmarks was a major development in 2022-23,” Ms McClelland said.  

“These reports were received well, prompting insurers to look at their performances and consider the areas in which they may need to improve systems or processes.” 

The Life CCC’s success in encouraging better reporting practices among life insurers also featured in the Annual Report.  

It noted that following the Life CCC’s efforts, more insurers reported significant breaches in 2022-23, reflecting a commitment to transparent reporting as an essential aspect of genuine compliance with the Code of Practice. 

While the Life CCC does not celebrate breaches, it acknowledges the importance of insurers identifying and reporting them promptly. 

Jan McClelland emphasised this point and expressed an ongoing desire to see accurate reporting of genuine compliance with the Code.  

“It is pleasing to see that our message about proper accurate reporting is getting through. More subscribers reporting breaches suggests that the code and reporting obligations are being taken seriously,” Ms McClelland said.  

“We encourage a genuine reduction in breaches based on improvements to processes, systems and procedures. And this begins with accurate and transparent reporting of breaches.”  

Read the Life CCC’s Annual Report on its website. 

 


About us:

The purpose of the Life Code Compliance Committee (Life CCC) is to monitor compliance with the Life Insurance Code of Practice to improve service standards in the Australian life insurance industry. It does this by monitoring, enforcing and reporting on Code compliance, and working collaboratively to improve Code standards and promote good practices.


Contact details:

media@codecompliance.org.au

More from this category

  • Crime, Insurance
  • 15/02/2024
  • 05:00
RACV

RACV AND NEIGHBOURHOOD WATCH WARN OF INCREASE IN BUSINESS BURGLARIES

RACV and Neighbourhood Watch are alerting business owners of an increase in burglaries of 39.8 per cent in 2023. According to Crime Statistics Victoria,…

  • Contains:
  • Insurance, Regional Country Services
  • 30/01/2024
  • 09:00
Department of the House of Representatives

Economics Committee probe into insurers’ responses to 2022 flood claims: hearings begin

TheHouse Standing Committee on Economicswill hold its first public hearings over the next four weeks as part of itsinquiry into insurers’ responses to claims resulting from the major floods in 2022. Many thousands of people were affected by the floods all along the east coast – from south-east Queensland down to Tasmania. The trauma is continuing for many people – with delays in being rehoused just one issue. A number of the affected towns were also hit again by floods over the recent Christmas/New Year period, compounding the trauma. The inquiry is considering the experiences of people in dealing with…

  • Insurance
  • 11/01/2024
  • 15:23
General Insurance Code Governance Committee

Insurance Industry’s Use of Expert Assessors Under Scrutiny

The General Insurance Code Governance Committee (CGC) wants to hear from people who have had experiences with expert assessors for home insurance claims. In looking into the way insurers manage home insurance claims, the CGC will consider the experiences of regular consumers as well as professional representatives in dealing with an expert assessor. Chair of the CGC, Veronique Ingram, noted the importance of fostering transparency and improved practices within the insurance industry. "We recognise the importance of addressing concerns and improving the overall experience for consumers in their interactions with insurance companies,” Ms Ingram said. "By calling out for people’s…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.