Zurich welcomes life code transfer from FSC to CALI
Zurich welcomes life code transfer from FSC to CALI | Insurance Business Australia
Life & Health
Zurich welcomes life code transfer from FSC to CALI
The transfer of the LICOP ownership will be effective on Sept 29
Life & Health
By
Abigail Adriatico
Zurich Financial Services Australia (Zurich) has welcomed the upcoming transfer of ownership of the Life Insurance Code of Practice (LICOP) to the Council of Australian Life Insurers (CALI).
What is the Life Insurance Code of Practice?
The LICOP is considered the commitment of the life insurance industry to meet mandatory standards concerning customer service and is designed to protect consumers. It outlines the industry’s key commitments and obligations concerning standards of practice, disclosures, and principles of conduct.
“The code represents the life insurance industry’s commitment to protecting customers and continually evolving. As the peak body for life insurers, CALI’s ownership of the code further underlines this commitment,” said Justin Delaney, chief executive officer, Zurich Australia & New Zealand.
What does the LICOP promise?
The LICOP includes the following 10 key promises:
We will be honest, fair, respectful, transparent, and timely when we communicate with you, and we will use plain language unless medical or other technical terminology is needed.
We will ensure our staff and authorised representatives use appropriate sales and retention practices.
We will offer extra support if you have trouble with the process of buying insurance or claiming.
If we find that a sale was made using unacceptable sales practices, we will fix it, for example by issuing a refund or replacement policy.
When you make a claim, we will explain the process and keep you informed about our progress assessing it.
We will decide on your claim within the code’s timeframes. But if we cannot, we will explain why and tell you how to make a complaint.
If we decline your claim, we will explain why in writing and let you know what to do if you disagree.
We will restrict the use of investigators and Surveillance to preserve your right to privacy.
The independent Life Code Compliance Committee (Life CCC) will monitor our compliance with the code.
We will be accountable for code requirements, and the Life CCC can sanction us.
“The Code impacts all facets of our customer interactions, from how products are designed and sold, through to the claims experience,” said Delaney.
Following its inception in 2016, the LICOP was revised and updated in July 2023. The changes involved sales, underwriting, premium disclosures, claims, mental health, vulnerable customers, sanctions, clarity on navigating the code, and the introduction of new enforceable provisions.
Previously, the LICOP was owned by the Financial Services Council (FSC). On its website, Zurich offered assurances that the transition will have no impact in its service as it will continue to be under the code’s provisions and standards.
“At Zurich, we take acting in the best interests of our customers seriously and we support maintaining an industry-wide approach that holds all insurers to a high standard,” said Delaney.
The transfer of ownership will be effective on Sept 29.
What do you think of the transfer of the life code’s ownership? Share your thoughts on the comments below.
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