Inquiries into income benefit payment delays and internal dispute resolution processes will begin in coming months after a surge in life code breaches.

Development and implementation of a revised code is another priority for the Life Code Compliance Committee, according to its 2026-27 work plan.

The committee says a thematic inquiry into income benefits will assess the “effectiveness of the systems and controls” insurers use to provide clear information at the start of a claim and to make timely payments. In 2024-25, the number of breaches related to timely payment of income protection benefits rose 67%.

The work plan says consumer advocates have identified poor communication and missed time frames as persistent issues.

“Because these obligations are specific and predictable, rising breach numbers may indicate weaknesses in claims onboarding, payment processes, monitoring controls or internal governance.”

The targeted review of internal dispute resolution will focus on complaints that result in claim decision reversals.

“The review will assess complaints about declined, closed or delayed claims, including whether insurers clearly explain claim decisions, review rights and complaint outcomes,” the committee says.

“Through this work, we aim to identify how avoidable errors in claims decisions occur, how complaints processes can be improved to address these errors promptly, and opportunities to strengthen the quality and independence of review processes.”

The committee expects to finalise its inquiry into claims handling delays and share findings this fiscal year.

“Following publication, we will engage with insurers on our findings, including any compliance concerns and opportunities to improve claims processes,” the work plan says.

“We will also undertake follow-up work to assess how insurers respond to our recommendations and determine whether further action is required.”

On mental health, the committee will engage with insurers that participated in an inquiry last year, to understand the basis for their underwriting settings.

“We will defer broader follow-up on the industry’s approach to providing mental health cover until the revised life code clarifies mental health commitments,” the work plan says.