CGC ramps up efforts to tighten compliance, oversight in insurance industry

CGC ramps up efforts to tighten compliance, oversight in insurance industry | Insurance Business Australia

Insurance News

CGC ramps up efforts to tighten compliance, oversight in insurance industry

Annual report highlights key sanctions, submissions, and advocacies

Insurance News

By
Roxanne Libatique

The General Insurance Code Governance Committee (CGC) has released its 2023-24 Annual Report, outlining its ongoing efforts to improve compliance and oversight in Australia’s insurance industry.

The report emphasised key actions taken over the past year, including:

“Our inquiry into the oversight of external experts revealed critical areas that needed attention, and we are pleased to see some meaningful change in the industry,” she said.

Allianz was required to make a $50,000 payment to a community organisation, which Ingram described as an important step in demonstrating the committee’s commitment to enforcing the code and holding insurers accountable for serious violations.

“Issuing our first sanction was a significant part of our compliance monitoring this year,” she said.

“Our submission to the parliamentary inquiry called out areas where the industry needed to do better, and we are starting to see some positive developments now,” Ingram said.

CGC calls for improved General Insurance Code of Practice amid review

Amid the General Insurance Code of Practice review, the CGC is advocating for expanded authority, including the ability to publicly name insurers who breach the code.

Ingram explained that transparency and accountability are critical to driving better outcomes for consumers.

“We are committed to working with all stakeholders to support the transition to a new, strengthened code that better serves customers,” she said.

The report also highlighted a shift in the CGC’s enforcement strategy, focusing on more proactive investigations and swifter responses to emerging risks.

“This is strengthening our oversight and our ability to ensure compliance with the code,” Ingram said.

A panel of industry and consumer experts leads the review. The panel has conducted the review in two phases, reflecting recommendations from the parliamentary inquiry into the insurance industry’s response to the 2022 floods.

The second phase, set for completion by mid-2025, will address flood-specific concerns and how the sector responded to catastrophic events.