Posted July 1, 2017 by AJ Horne
The Life Insurance Code of Practice has now come into effect for life insurance companies across Australia. It applies to all member organisations of the Financial Services Council.
The Code was designed to rebuild consumer confidence and trust in the life insurance industry by setting out minimum standards for customer service.
With new research by Roy Morgan1 showing that customer satisfaction among life insurance policyholders has dropped over the course of the last year to just 67.4%, the introduction of the Code could not be more timely.
Life insurance is a complicated business. Complex products and processes and outdated legacy platforms can make it seemingly impossible to meet the increasingly sophisticated needs and expectations of today’s consumers. The Code, which outlines requirements for compliance to new industry standards for medical definitions, sales processes, claims handling, and investigations, certainly represents a big step forward for the industry.
However, for life insurers, financial advisors and superannuation trustees, aligning current business processes and practices to conform to the requirements of the Code is a complex matter. Often there is little or no common understanding of existing end-to-end processes at an enterprise level, so being able to identify and close gaps between current processes and those that will be required under the Code can be difficult.
That’s where DST’s new Code compliance offering comes into play.
We’ve created a purpose-built offering that can help you to model your current business processes against the Code’s requirements, understand where you’re compliant, and identify and address any gaps. What’s more, you can also take the opportunity to improve the efficiency of your processes and manage ongoing process change.
The views expressed in this publication are solely those of the author and do not necessarily reflect the position or policy of DST Systems, Inc. or its affiliates, subsidiaries, joint ventures, officers, directors, or management.
1“Satisfaction with risk and life insurance remains the lowest of all major insurance types” – Roy Morgan, February 20, 2017 http://www.roymorgan.com/findings/7144-satisfaction-with-risk-life-insurance-remains-lowest-of-all-insurance-types-201702201200.