Code Governance Committee calls for general insurance code of practice improvements

Ingram expressed her disappointment in the record number of breaches of the code in 2021-22 while acknowledging the difficulties insurers faced over the years.

“Seeing breaches rise close to 60,000 is disappointing for us and should be disappointing for all in the industry, too,” she said. “We know that there were challenges across the year, with the floods in Queensland and New South Wales causing an increase in claims and putting pressure on insurers, but we’ve seen breaches rise now for five years. And claims-handling is always the source of most breaches.”

With 24,983 breaches attributed to staff not following processes and procedures, the CGC emphasised the need for insurers to improve.

“Insurers must recognise that good systems and processes, properly integrated, will help to prevent or mitigate mistakes in the busy times, the times of high pressure. It is crucial that all insurers look at their current systems and processes and identify areas that aren’t working as well as they could. It is time to reverse the trend and see improvements that will bring down breaches in the next 12 months,” Ingram said.