Life Insurance Code of Practice and the Royal Commission

Life Insurance Code of Practice and the Royal Commission

It is interesting to reflect on the Financial Services Council (FSC) Life Insurance Code of Practice in light of the recent findings of the Royal Commission.

The Code was developed to address the need for life insurers to improve:

• 1) the standard of client communication,
• 2) the timeliness of claims handling and,
• 3) the confidence Australians have with the Life insurance industry.

This Code is binding on life insurers from 30 June 2017. Less than a year later, the true need for this Code has been highlighted as some of the biggest and better known brands in the financial services industry have been found to have failed to look after their clients to the required standards.

The Royal Commission has exposed inappropriate, and at times immoral, behaviour from some of the industry’s most ‘trusted’ companies.

NobleOak is a supporter of this Code and its objectives. All Life insurers need to be made accountable in providing honest, high quality service and to ensure they protect Australians when they need it most.

1.Standard of client communication

At NobleOak, we are very proud of our focus on our clients and culture of putting the client at the centre of everything we do, including paying claims. This focus has allowed us to take pride in the feedback we receive from our customers and clients.

2.Timeliness of claims handling

We also pride ourselves on paying genuine claims quickly and efficiently and we have dedicated claims consultants who are based here in Australia.

Following is a very recent testimonial from a NobleOak claimant:

Being Diagnosed with terminal cancer with a prognosis of 6 months, my fear was that with all the hard luck stories about Insurance companies holding back and dragging out claims, that I would miss out on being able to enjoy the rest of my shortened life making memories for my children. With NobleOak, these fears were allayed with my claim being paid out within 5 weeks of submission. Thank you NobleOak for assisting me in being able to afford to make precious memories for my children before I pass.

Very sadly, this client passed away last Thursday, 10^th May. We are proud to have been able to provide them with some comfort.

3.The confidence Australians have with the Life insurance industry

NobleOak has had a culture of looking after our clients for over 140 years.

The key elements of this culture include:
i) Nobility – We do the right thing and act with integrity. We offer genuine value. We are here to protect Australians with better cover, by making Life insurance more accessible and affordable.

ii) Simplicity – We use simple, clear communication at all times and avoid jargon. We aim to make obtaining Life insurance and Income Protection cover easier and faster and we explain the process clearly to our clients. Our Product Disclosure Statements are written clearly with no fine print so our clients know exactly what they are covered for.

iii) Adaptability – We are responsive to and drive positive change continually to ensure our clients receive the best service and products they can. We continually improve and learn and we are innovative.

iv) Delivery – We deliver results, not excuses. This includes both to our clients and to each other. When we say we are going to do something, we do it.

NobleOak is proud to be Australia’s truly independent life insurer and we remain at all times true to our friendly society heritage – making sure our clients and members are looked after when they need us.

Click here for our Code of Practice, as well as for copies of the 7 Client Guides that set out the standards you can expect from the team at NobleOak when taking out and managing your cover.

Please note that the information we provide is not advice but general information only.

Sources:

Financial Service Council: Life Insurance Code of Practice: Second Consultation Draft 10/08/16