The Life Insurance Code of Practice is an initiative by the life insurance industry aimed at providing protection that suits Australians when they need it most, in an accountable and transparent way. The independent review, which began on 1 October 2025, involves deep engagement with the community, consumer advocates, and regulators to ensure the Life Code remains strong, relevant, and trusted.
The interim report suggests that proposed changes to mental health cover represent a step back from the industry's current commitments. It calls for insurers to enhance their mental health coverage and ensure that underwriting practices are fair and individualized, rather than relying on blanket exclusions or limitations.
In response to the interim findings, the life insurance industry is expected to consider adjustments to their policies and practices to better support individuals with mental health conditions. This includes providing clearer information to consumers, improving transparency in underwriting decisions, and ensuring that policy terms are fair and reasonable.
The final report of the review is anticipated to provide further recommendations aimed at strengthening the Life Insurance Code of Practice and enhancing consumer protection, particularly in relation to mental health coverage.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
