Complaints across benefit types saw a “significant” increase in the 2021/22 reporting period, in some cases by the thousands, the Life Code Compliance Committee says in a new report.

A two-year comparison with the previous 2020/21 period showed the rise in percentage terms ranged from 31% to 554%, according to the committee’s annual data and compliance report.

Funeral products led with the biggest jump in complaints on a percentage basis, rising 554% from 523 to 3423 over the two-year period.

Death placed second, up 514% from 1348 to 8274; followed by accident, 220% (from 115 to 368); trauma, 139% (from 475 to 1133); consumer credit insurance, 136% (from 2209 to 5207); and disability income insurance, 100% (from 4645 to 9296).

Total and permanent disability recorded the lowest increase of 31%, with complaints up from 1973 to 2582.

The committee says changes to regulatory requirements may have contributed to the increase, but life insurers should find ways to improve their products and services.

Chair Jan McClelland says changes to Australian Securities and Investments Commission requirements meant complaints were defined more broadly and subscribers had to record and report more instances.

“No doubt this was a factor. But, fundamentally, focussing on good practices that produce good outcomes for consumers will go a long way to mitigating issues.”

The committee says its report provides an overview of compliance with the code based mainly on the data submitted by all 23 subscribers for the 2021/22 reporting period.

Each subscriber submitted detailed data workbooks for the 2021/22 reporting period. It includes information such as the volumes and types of benefits and business issued and the number, nature, and outcome of complaints for each distribution channel.

Click here for the report.