Unpacking Life Insurance Code of Practice 2.0
Regulatory -
The Financial Services Council introduced the existing Life Insurance Code of Practice (LICOP) in 2017 to improve customer outcomes in the life insurance industry. LICOP sets out the standards that life insurers must meet when providing their products and services to customers.
From 1 July 2023, LICOP 2.0 (the New Life Code) will replace LICOP, introducing a number of changes to insurer commitments and obligations to support provision of products and services to customers, including your members, in an open, fair and honest way.
We caught up with our experts, George Nafpliotis, Head of Industry and Enterprise Solutions and Chris Healey, General Manager Group Claims who shared their thoughts on how the New Life Code and TAL’s arrangements will help provide the best possible outcomes for your members.
A focus on members
Continuing strong governance and oversight
The New Life Code requires life insurers to have robust governance and oversight frameworks in place to meet the New Life Code's standards. George said, “our robust risk and governance process is guided by the principle of doing the right thing for every member. A range of governance forums, including our Claims Decision Advisory Panel, ensure consistency and fairness in how we handle members’ claims.” we handle members’ claims.”
Transparency and clear communication at the time of claim
The New Life Code requires life insurers be transparent and use plain language in their communications to members about their claim.
George said, “we understand that members at the most vulnerable time in their life want things to be simple when they make a claim, especially when it comes to something as potentially complex as insurance. That’s why we design and deliver clear communications throughout a member’s claim for peace of mind while they navigate through their recovery or health transition.”
Fair claims handling and supporting vulnerable members
Chris said, “at claim time, we recognise that some members and their families may already be in a particularly difficult position, not only due to their personal circumstances and background, but due to the increased strain because of the nature of their condition, their emotional response, or the potential perceived complexity of the process.