The Life Insurance Code of Practice has set the bar too low, according to 36% of industry leaders surveyed at a conference.

About 59% believe the code’s first iteration, released last year, is about the right level and 4% believe it sets the bar too high.

Some 47% favour engaging with the Australian Securities and Investments Commission on code approval, while 36% think the industry should wait until the next version is released.

Consultations on the second iteration are due later this year, with 72% of executives saying it should focus on clarity issues, 43% on sales practices and advertising, and 29% on policy design and disclosure.

More than 300 industry leaders attending the Financial Services Council Life Insurance Conference in March were invited to participate in the online poll, which was run by DST Systems.

“This poll found, in general, that the industry is strongly behind the process of reform, sees the potential of self-regulation and believes there are significant opportunities to raise the bar,” DST says.

All polled executives believe the Insurance in Superannuation Voluntary Code of Practice is a step in the right direction, but it needs more work.

Current reforms are likely to increase the trust consumers have in financial advice, according to 56% of respondents, while 15% disagree.

Direct sales of insurance via phone or online are likely to grow at a slower rate than today, 57% of executives say.

About 54% believe failing to meet community expectations and reputation risk is the most significant regulatory risk facing direct insurers; 31% cite unconscionable or misleading conduct in telephone sales and 15% flag breaching the boundaries of general advice.