Life Insurance Code of Practice

The Life Insurance Code of Practice is a self-regulatory code developed by the Financial Services Council that member life insurers commit to follow. The Code, which underwent major revision in 2024, sets standards exceeding legal minimums across key areas: clear communication and product design; fair claims handling with maximum timeframes; support for vulnerable customers including those with mental health conditions or family violence situations; improved dispute resolution; and transparency in policy terms and changes. Key provisions include: insurers must complete initial claim assessments within 12 months (with limited exceptions); they must explain claim decisions in plain language; they cannot discriminate based on genetic testing; they must have specialist support for mental health claims; and they commit to ongoing policy reviews to ensure fairness. The Code is monitored by an independent Code Governance Committee which investigates breaches, issues sanctions, and publishes compliance reports. Breaches can result in requirements to remediate affected customers, public naming, and referral to regulators. Consumers can reference the Code when making complaints, and AFCA considers Code requirements when assessing disputes. While voluntary, all major life insurers are Code subscribers, covering the vast majority of the market.