Life Insurance Code of Practice

TAL fully supports the Financial Services Council (FSC) in their development of a strong Life Insurance Code of Practice, which was released today.  This Code of Practice sets out substantial obligations on the life insurance industry, and is designed to lift industry standards and enhance consumer protections in the key areas of life insurance sales practices, underwriting and claims.

Following the release of the Code of Practice, CEO of TAL, Brett Clark, said: “This Code of Practice represents a significant statement by the industry, and will ensure that insurer practices across the industry are lifted to better meet consumer needs and expectations. I believe our industry as a whole, and the customers we serve, can only benefit from the added rigour that comes with this Code of Practice.”

“However, our work is not done.  The release of the Code of Practice should be seen as the start of the journey for the industry, not the end.  As an industry, we should expect and demand to be held to the highest standards, and it is our challenge now to continue pursuing progress on this Code of Practice to ensure we ultimately deliver greater trust and confidence in the life insurance industry amongst all Australians.”

TAL is committed to driving further progress in the following areas, ahead of the planned formal review in July 2019:

  1. Encouraging life insurers and trustee groups to work collaboratively to make commitments on standards in the end-to-end insurance experience for superannuation members
  2. Supporting the application by the FSC to the ACCC in relation to Funeral Plan sales practices (for example, level premium only policies and requiring insurers to offer the product only to customers aged over 40)
  3. Supporting the introduction of standard minimum medical definitions for individual trauma policies to provide confidence and certainty to consumers at claim time 

“The Code of Practice announced today represents great progress, and I look forward to working on behalf of TAL with the FSC, other life insurance industry members and trustee groups to continue driving improvement in our industry, which plays such an important role in the life and wellbeing of millions of Australians,” Clark concluded

 
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