October was a historic month in life and for life insurance.

An unmatched number of impactful reforms for the life insurance industry commenced in the first week of October, including new breach reporting requirements, design and distribution obligations and the duty to take reasonable care not to make a misrepresentation.

The ability of the industry through lockdowns to prepare for and meet the breadth of reforms is a testament to the resilience of the industry.

Of course, the changes don’t stop with the October reforms. Further UCT and code changes are on the horizon and we preview these in this Bulletin, as well as discussing the regulatory guidance on the new breach reporting requirements.  

As it happens, October also saw what appears to be the first court judgment relating to PYS notices and lost insurance cover due to inactivity under the PYS reforms. We discuss the ramifications of this noteworthy SADC decision for trustees and insurers. Interestingly, an underlying theme of this judgment was the value of life insurance contributing to a finding that the customer would have maintained cover if they had received notice that their cover was about to end due to inactivity. A further reminder that reforms which extinguished cover for certain cohorts may not have been the optimal way of protecting customers.

TPD definitions, claims processes and data continue to be areas of regulatory focus and we break down for you ASIC’s Report 696 ‘TPD Insurance: Progress made but gaps remain’.

We also analyse some interesting AFCA determinations relating to an insurer’s right to vary premiums and inappropriate life insurance financial advice.

A reminder that our next Life Matters webinar is on Thursday 4 November 2021 at 1pm. Turks life experts, Sofia Papachristos and Matt Corkhill, have prepared a great presentation on LICOP 2.0 - The 5 key things you need to know. If you would like to register, please email us and we will organise your registration.

We do hope you enjoy the read, perhaps at your favourite cafe!

As always, please reach out to a Turks life expert if you have any questions.

Hope to catch up with you all soon.