The Life Insurance Code Compliance Committee has formally warned an unnamed insurer following more than 10,000 breaches relating to late, incomplete, or inaccurate annual notices, exposing systemic weaknesses in their systems and oversight.
The Life Insurance Code Compliance Committee has issued a formal warning to an unnamed life insurer after it disclosed more than 10,000 breaches of the Life Insurance Code of Practice linked to annual notices that were late, incomplete or inaccurate.
According to the committee, the failures stretched from August 2024 to January 2026 and affected notices that were meant to spell out policy benefits, premium arrangements and any changes to cover. The insurer’s own review found that 10,105 breaches had occurred, including 4,686 delays caused by a third-party provider it had engaged to issue the notices.
The committee said the problems emerged during a large-scale migration of legacy products and exposed weaknesses in the insurer’s systems, compliance oversight and assurance controls. The issue first came to light after a customer complaint in April 2025, after which the insurer expanded its review and kept reporting additional breaches as they were identified.
Jan McClelland, chair of the Life CCC, said annual notices matter because they tell customers what their cover includes, what they are paying and whether anything has changed. She said a formal warning and ongoing assurance requirements were a proportionate response, adding that the insurer must now show it has fixed the underlying weaknesses rather than simply correcting individual notices after the event. The committee said it will assess whether the remediation is effective and capable of preventing a repeat, while the insurer has already updated notices, corrected policy details and contacted affected customers.
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