The Financial Services Council (FSC) has rejected calls for legislation allowing the Australian Securities and Investments Commission (ASIC) to get involved in claims disputes.

In a submission to the Parliamentary Joint Committee on Corporations and Financial Services’ life insurance inquiry, ASIC asked the Government for such powers.

But the FSC argues its Life Insurance Code of Practice has introduced high standards in claims handling, and there is no need to introduce more regulation and legislation.

“Self-regulation can be implemented much faster than costly and time-consuming legislation,” FSC CEO Sally Loane said. “The code has the capacity to evolve and change with consumer needs.

“It will deliver consumer benefits in a much more efficient and timely way than waiting for complex legislation.”

The code contains timeframes for claims management and communication updates, plus rules around the use of surveillance to verify claims’ legitimacy.

“The code, which ASIC has acknowledged should improve outcomes for consumers, will be continuously improved and developed,” Ms Loane said.

“Further iterations of the code will directly deal with other stakeholders in life insurance including superannuation fund trustees.”

The code becomes mandatory for all FSC members on July 1.