Life CCC unveils FY27 priorities

The Life Code Compliance Committee (Life CCC) has laid out its priorities for the current financial year, including providing the necessary support required for the upcoming implementation of the revised Life Code (Code).

The focus in FY27 is largely around the revised Code, as the committee is aiming to procure a clear and practical Code while supporting consistent implementation across the industry, however it does not expect the revised Code to commence this financial year.

This, the committee has set out a range of recommendations to improve the Code to ensure it remains fit for purpose.

"We will engage constructively with industry as it considers these recommendations, working towards an effective, robust, and enforceable Code," the Life CCC said.

"We will focus on commitments that are clear, measurable, and support good consumer outcomes while remaining practical for insurers to implement.

"While we do not expect the revised Code to commence in 2026-27, we will begin planning for its implementation to support industry preparedness and a smoother transition."

Meanwhile, the Life CCC will also examine early claims communication and timely payment of income benefits and conduct complaints handling and internal dispute resolution (IDR) reviews.

In 2024-25, insurers reported an 84% increase in breaches of clause 5.5, which requires initial claims information within 10 business days of the claim received date, and a 67% increase in breaches of clause 5.63, requiring timely payment of ongoing income-related benefits, affecting some 1676 customers over the period.

The Life CCC said rising breaches can indicate "weaknesses" across various mediums, including internal governance, claims onboarding and legacy platforms issues.

ASIC has raised similar concerns during the committee's 2026 strategy discussions, particularly in relation to industry consolidation and legacy products, it said.

The uptick in breaches is triggering the Life CCC to conduct a 'thematic inquiry' into the issue, focusing on the systems, processes, governance and monitoring controls that support compliance, it said, which will aim to identify any "systemic causes of non-compliance, promote stronger claims controls and support more reliable communication and payments for customers."

Meantime, to target claims decision quality and insurers' complaints handling practices, the Life CCC will also conduct a review to assess complaints on declined, closed or delayed claims, especially whether insurers were able to clearly explain claim decisions.

The review will identify avoidable errors and the method to address them, the committee said.

Additionally, in relation to other ongoing priorities, including claims handling delays inquiry and mental health cover, the Life CCC said it will finalise its inquiry into claims handling delays this financial year and will continue to provide support fair mental health underwriting.

"During 2026-27, we will engage with the insurers who participated in our 2025 inquiry to understand the basis for these settings and any changes made or planned in response to our findings," the Life CCC said.

"We will defer broader follow-up on the industry's approach to providing mental health cover until the revised Life Code clarifies mental health commitments.

"Throughout the development of a revised Code, we will support strong consumer protections and fair outcomes, balanced with sustainable, evidence-based product design and underwriting."