Providing a snapshot of the life insurance industry and its compliance with the Life Insurance Code of Practice, this report shows life insurers need a stronger commitment to their code compliance obligations.
A number of life insurers appear not to be taking their obligations under the Life Insurance Code of Practice (the Code) seriously, according to this report released by the Life Code Compliance Committee – the independent Committee which monitors and enforces industry compliance with the customer service standards set out in the code.
The report aggregates data collected from code subscribers together with Committee compliance information for the year and is intended to provide a snapshot of the life insurance industry and its compliance with the code for the reporting period.
The Committee was able to determine a number of key findings through the report, including:
- The Code’s smaller subscribers generally provided high-quality data but larger subscribers need to improve their data quality assurance and reporting.
- Although recent improvements have been noted, the corporate culture of many subscribers appears not to align with the standards set out in the Code.
- The effectiveness of subscribers’ staff training programmes and monitoring frameworks is questionable, as evidenced by the large volume of breaches caused by human error.
- The under-reporting of breaches relating to claims decision timeframes indicates that subscribers lack sufficient processes for recording and reporting such breaches.
- Increases in claims-related complaints and claims handling timeframes show that subscribers need to improve their claims management processes.