FSC's Life Code consultation now open until January 31

CONSULTATION on the new Code governing the conduct and practices of life insurance members of the Financial Services Council (FSC) has been extended until January 31, 2019.

The draft FSC Life Insurance Code of Practice is designed to lift standards in product design, sales, underwriting, customer service, complaints and claims handling.  The Code was first released for consultation in November 2018, which included public meetings in Sydney, Melbourne and Brisbane. 

More than 20 submissions from the public and key medical, consumer, and welfare groups have been either received or are in the process of being finalised.

FSC CEO Sally Loane said several organisations had requested additional time to make their submissions to the new Code.

“We want interested parties to know that the period for consultation has been extended until 31 January – there is still time to get your views heard,” Ms Loane said.

In all, more than 30 significant changes have been proposed to how FSC member life insurers will treat customers under the new Code, including:

• Banning pressure selling of products and coercive retention tactics.
• Banning medical disclosure checking without reasonable grounds.
• Ensuring customers are no better or worse off at claim time (excluding fraud).
• Improving Funeral insurance to ensure people understand what they are buying.
• A raft of reforms to underwriting, claims and mental health.
• Separating Consumer Credit Insurance (CCI) from credit product sales.

To obtain a copy of the Draft Code and the Consultation Questionnaire, click here.

 

About the Financial Services Council

The Financial Services Council (FSC) is a leading peak body which sets mandatory Standards and develops policy for more than 100 member companies in Australia’s largest industry sector, financial services. FSC's full members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. FSC supporting members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services industry is responsible for investing almost $3 trillion on behalf of more than 14.8 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange, and is the fourth largest pool of managed funds in the world.

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