The latest report from the Life Insurance Code Compliance Committee (Life CCC) emphasises the need for insurers to remain focused on their support for vulnerable customers.
Covering the period from 1 July 2023 to 30 June 2024, the Annual Industry Data and Compliance Report highlights key areas requiring further attention, including financial hardship support, effective communication, and timely claims processing.
Jan McClelland AM, Chair of the Life CCC, noted that support for vulnerable customers is an area where insurers must remain vigilant.
“Providing accessible, timely, and effective financial hardship support is essential. There are opportunities for insurers to improve their processes to ensure customers receive the assistance they require,” Ms McClelland stated.
The report also highlights that insurers continue to face challenges in providing clear and timely information, contributing to customer frustration and uncertainty.
“Clear and timely communication allows insurers to better manage customer expectations and reduce unnecessary distress.” Ms McClelland said.
“Transparency and responsiveness are key pillars of customer service, and insurers must make sure their processes and procedures meet their Code obligations.”
While some insurers have improved their claims handling timeframes, delays persist, particularly in Total and Permanent Disability and Income Protection products. Some insurers continue to fall well behind industry leaders in this area.
“Addressing delays in claims processing must remain a priority. Customers rely on these payments for financial security, and insurers must ensure that claims are assessed and finalised in a timely manner,” Ms McClelland added.
The report also notes an increase in significant breaches, which the Life CCC attributes to improved identification and reporting rather than solely an increase in non-compliance.
And it identifies opportunities for insurers to broaden the way they address the root causes of breaches, including action beyond staff training.
“Training is important, but it is not a standalone solution. Insurers must take a broader approach to identifying and resolving systemic issues to ensure lasting improvements in compliance and customer outcomes,” Ms McClelland said.
The Life Insurance Code of Practice sets clear expectations for good industry practice, and continued focus on compliance is essential for building trust in the sector.
Read the full Annual Industry Data and Compliance Report.
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The Life Code Compliance Committee’s (Life CCC) purpose is to monitor compliance to the Life Insurance Code of Practice to improve service standards of the Australian life insurance industry. They do this by monitoring, enforcing and reporting on code compliance, and working collaboratively to improve Code standards and promote industry best practice.
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