Life insurers, consumer advocates and other stakeholders have until December 15 to provide feedback on ways to improve the industry code.

Independent reviewer Peter Kell says the consultation is an “important step” in developing recommendations to ensure the Life Insurance Code of Practice meets evolving community standards and provides consumer benefits.

“The code plays a vital role in setting clear expectations for how life insurers interact with their customers,” he said. “This review is an opportunity to hear directly from customers and 
organisations who use, rely on and are affected by the life code.”

The consultation paper says key areas for consideration include claims handling, support for vulnerable customers, medical definitions and mental health protections for consumers.

Feedback is also sought on how the code applies to third parties such as authorised representatives; direct sales practices; insurers’ communication of premium changes; and complaints handling processes.

Code enforceability is another area Mr Kell wants to review.

“Voluntary codes approved by [the Australian Securities and Investments Commission] may contain one or more enforceable code provisions, a breach of which constitutes a breach of the law,” the paper says.

“The reviewer is interested in views on how the current code is enforceable and whether any changes are required to strengthen enforceability.”

See the paper here.