Final Life Code Review Signals Higher Standards for Life Insurers
Business owners should prepare for clearer rules on premiums, claims and mental health cover
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The independent review of Australia’s Life Insurance Code of Practice has moved from consultation to action, with reviewer Peter Kell releasing a final report that recommends 85 reforms.
For business owners, directors and partners who rely on life cover to protect revenue, debt obligations and succession plans, the review is more than an industry governance exercise.
It points to a future in which insurers may be expected to explain decisions more clearly, communicate premium risks earlier and handle claims with greater consistency.
This story extends earlier coverage of the interim review, which had already flagged stronger consumer protections. The final report goes further by setting out a broad reform agenda across mental health cover, underwriting, vulnerable customers, First Nations customers, claims handling, dispute resolution and enforceability. The Council of Australian Life Insurers will now consider the recommendations, with the industry expected to respond before any revised code is finalised.
A key area for business policyholders is mental health. The report recommends stronger standards to ensure customers with mental health conditions are treated fairly and transparently, while also recognising the sustainability pressures insurers face as mental health-related claims rise. It also recommends preventing standard policies from excluding all mental health conditions, including arrangements where customers could opt out of mental health cover altogether. For SMEs, this matters because mental health can affect owners, senior staff and key revenue generators just as materially as physical illness or injury.
The underwriting recommendations are also relevant to owners seeking business life insurance, key person insurance or buy-sell agreement cover. Where cover is declined or offered on non-standard terms, insurers would be expected to provide written reasons, explain how disclosed information affected the outcome and give applicants an opportunity to correct information. On request, applicants could also receive a plain English summary of the data or actuarial basis relied on. That could make difficult underwriting outcomes easier to understand and challenge where information is incomplete or misunderstood.
Claims handling is another major focus. The review recommends clearer claim contacts, better update requirements and tighter timeframes for reassessing reopened claims. In a business context, delays can quickly affect cash flow, loan servicing, equity transfers and continuity planning. If the final reforms are adopted, business policyholders may see more structured communication during stressful claim periods.
Premium transparency may prove just as important. The report recommends that insurers explain key premium information earlier in the sales process, including how premiums may increase over time, how temporary discounts work and the difference between premium structures. For business owners balancing affordability with adequate protection, this reinforces the importance of reviewing cover regularly and obtaining specialist advice before relying on any policy as part of a succession, debt protection or key person strategy.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
A second H5 bird flu detection in New South Wales has moved avian disease risk from a distant global concern to a practical on-farm planning issue for Australian producers. The latest case involved a petrel found at Hawks Nest on the NSW Mid North Coast, following an earlier detection at the same beach. Authorities have indicated the human health risk remains low, and there has been no reported H5 detection in NSW commercial poultry flocks at this stage. - read more
The latest reporting on the Partnered Health cyber attack may be a wake-up call for allied health practices that store patient information, uses shared booking systems or relies on cloud-based clinical software. The healthcare group, which operates more than 60 clinics nationally, became aware on 23 June 2026 that a malicious actor had accessed data from some clinics. Potentially affected patients were not notified publicly until more than three weeks later. - read more
A cyber attack disclosed by Partnered Health Group on 15 July 2026 has put health-related data security back on the agenda for Australian service businesses. The incident reportedly affected patient information across 21 clinics in multiple states and territories, including contact details, Medicare information, private health insurance details and medical records. While this was a healthcare provider incident, the lessons are highly relevant for fitness professionals who collect health screening forms, injury histories, progress notes, emergency contacts and payment details. - read more
A new industry report on AI agents has sharpened an issue that many Australian consultants can no longer treat as theoretical: when automated tools make decisions, access client data or carry out tasks, which insurance policy responds if something goes wrong? - read more
A fresh roundtable in Taree has put flood insurance affordability back under the spotlight, more than a year after the May 2025 floods devastated parts of the Manning Valley and Mid North Coast. The discussion, co-hosted by Insurance Council of Australia CEO Andrew Hall and federal MP Alison Penfold, brought together business and council leaders to examine why recovery alone is not enough when the underlying flood risk remains. - read more
Understanding the significance of insurance in managing your finances is crucial. It acts as a safeguard, providing a buffer against unexpected losses or damage to your most valuable possessions. However, the costs associated with this necessary protection can be challenging to manage, especially when it comes to fitting insurance premiums into a monthly budget. - read more
Household insurance is a crucial safety net for both homeowners and renters in Australia, offering protection against a range of potential damages and losses. Navigating the insurance claims process, however, can often be challenging and fraught with pitfalls. - read more
For many Australians, their home is their castle, their sanctuary, and most significantly, their largest investment. Safeguarding this asset against unpredictable events is not merely a consideration—it's a necessity. That's where Total Replacement Cover comes into play. But what does this term really mean, and why is it paramount when it comes to choosing a home insurance policy? - read more
Household insurance is a type of coverage that protects you against financial losses from events such as theft, fire, or natural disasters. It typically includes two main components: building insurance, which covers the structure of the home, and contents insurance, which covers personal belongings within the home. - read more
If you're running a business from your home, you may think that your homeowner's insurance policy has you covered. Unfortunately, this is not the case. Homeowner's insurance policies are not typically designed to cover business-related losses, leaving you vulnerable to significant financial risks if something goes wrong. - read more
Knowledgebase
Professional indemnity: An insurance that provides cover for liability incurred in the course of exercising a profession.
No comments yet. Be the first to share your thoughts.