Life Insurance Code oversight shifts to proactive, high-impact monitoring
Life Code Compliance Committee
The Life Insurance Code Compliance Committee (Life CCC) stepped up its oversight of the Code of Practice in 2024-25, refining its monitoring approach to focus on high-impact matters and systemic issues affecting insurers and their customers.
In its Annual Report, the Life CCC outlined a more proactive compliance monitoring strategy and the introduction of a new Impact Framework, designed to connect oversight directly to customer outcomes and industry improvement.
Chair of the Life CCC, Jan McClelland AM, said the changes reflect an improved approach to compliance.
“Proactive, targeted oversight ensures our work delivers lasting benefits for customers,” Ms McClelland said.
“The Impact Framework will help us measure success in customer outcomes, while promoting greater transparency and accountability across the industry.”
Inquiries highlight key areas for improvement
A significant focus for the Life CCC in 2024-25 was its inquiry work, with two significant pieces underway: one looking into mental health underwriting in life insurance, and another into insurers’ support for Aboriginal and Torres Strait Islander customers.
“Our inquiries provide important opportunities for reflection and reform,” Ms McClelland said.
“They shine a light on practices that can and must improve if insurers are to meet both the letter and the spirit of the Code.”
The Life CCC also commenced a review of how insurers manage claims for sick or injured policyholders, further building its understanding of customer experiences and shaping future expectations.
Balanced enforcement to drive lasting change
Investigations in 2024-25 were more targeted, with the Life CCC encouraging insurer-led remediation while using sanctions for the serious and systemic cases of non-compliance.
Insurers that demonstrated credible remediation plans were given the opportunity to resolve matters independently, with follow-up audits ensuring they met their commitments.
At the same time, the Life CCC applied sanctions for insurers that failed to uphold Code obligations in a serious way – including one case where an insurer denied applicants’ rights guaranteed under the Code.
Ms McClelland said, “We will continue to recognise insurers who take ownership of issues, while holding others firmly accountable when they don’t live up to their Code commitments to customer protections.”
Strengthening accountability and trust
The Life CCC said findings from its work in 2024-25 are shaping its current monitoring efforts and will feed into the upcoming independent review of the Life Insurance Code of Practice.
“Accountability, transparency and trust are at the heart of good regulation,” Ms McClelland said.
“Our role is to ensure that compliance with the Code translates into real, tangible improvements for customers. That’s the standard we will continue to pursue.”
Read the Life CCC's Annual Report 2024-25
About us:
The Life CCC is an independent body established to monitor compliance with the Life Insurance Code of Practice. Its purpose is to ensure consistent and high-quality service standards are maintained for the benefit of consumers. This also works towards increasing trust and confidence in the life insurance industry.
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