Kell to Lead Comprehensive Review of Australia's Life Insurance Code
Kell to Lead Comprehensive Review of Australia's Life Insurance Code
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Starting on October 1, a comprehensive review of the voluntary Life Insurance Code of Practice will commence, with a focus on assessing the effectiveness of revisions made to its regulations and standards in 2023.
The Council of Australian Life Insurers (CALI) has appointed Peter Kell to lead this independent review and deliver the final report by June 30 next year.
Kell brings a wealth of experience to the role, having previously served as deputy chair of the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). His past role as CEO of consumer advocacy group Choice further attests to his suitability for the task.
The CALI, under the leadership of CEO Christine Cupitt, emphasises that the review aims for thoroughness, inclusivity, and credibility. Cupitt highlighted Kell’s extensive expertise in industry regulations and self-regulation and noted his clear dedication to enhancing consumer outcomes within financial services. Kell is expected to significantly strengthen the life insurance code to better serve customers and the industry.
This review opens a dialogue with the community, consumer representatives, regulators, and industry participants, ensuring the code remains robust, relevant, and trustworthy. A consultation paper will be published on October 17, with an invitation for submissions until December 15.
Key issues to be scrutinised include the code's provisions for customers with mental health conditions, the appropriateness of claims handling processes, and the enforceability of commitments under the code. These considerations are outlined in the review’s terms of reference.
Justin Delaney, CEO of Zurich Financial Services Australia, underscored the review's importance, stating that it reflects the industry's commitment to continuous improvement and achieving favourable outcomes for customers. He noted the intention to register the code with a regulatory body, highlighting a proactive approach to regulation.
The revised code is anticipated to come into force by October 1, 2027, representing a significant step in fortifying the framework governing life insurance practices in Australia.
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Dictionary
Coverage
noun
The amount of risk or liability covered for an individual or entity by way of insurance services.
