Leading life insurer AIA Australia has welcomed the launch of the new Life Insurance Code of Practice as a landmark agreement to further the industry in building consumer trust in life insurance.
Speaking at today’s launch, Chief Executive Officer of AIA Australia Damien Mu said:
“Life insurance plays an important role in making a difference in the lives of millions of Australians and their families in their time of need. This is done in many instances by partnering with superannuation funds and financial advisers who perform a critical role in assisting Australians with their insurance.
“Given the importance of what we do the reality is that as an industry we need to continually improve practices and ensure we do better by consumers. We have heard from sections of the community that we need to do more to improve trust and confidence in life insurance and ensure higher standards across the board, particularly in how we handle and process claims.
“Despite our best intentions and efforts we also know that we need to do better in how we communicate and engage customers, and improve the understanding of the product and benefits we deliver as an industry.”
“Importantly the Code places significant obligations on insurers that go beyond existing legal requirements and that consumers will receive important benefits and protections as part of this. This includes the use of plain English in product disclosure, clear expectations on sales practices, minimum standard definitions, and additional support provided to vulnerable people and those experiencing financial hardship.”
“We need to immediately commence work on extending the code to cover insurance in superannuation. We look forward to working collaboratively with the superannuation industry and trustees to further improve the insurance experience for superannuation members. An insurance taskforce will be established to help progress this work.”
Damien added:
“We must now unite in taking responsibility to implement industry led reforms as quickly as possible. I endorse the Code of Practice, and provide our full support in making this significant step for our industry.”
