Key reforms unveiled in General Insurance Code of Practice review

Key reforms unveiled in General Insurance Code of Practice review | Insurance Business Australia

Insurance News

Key reforms unveiled in General Insurance Code of Practice review

Insurers reaffirm commitment to addressing conduct issues

Insurance News

By
Roxanne Libatique

The independent panel overseeing the review of the General Insurance Code of Practice has issued its initial report, recommending a series of updates to the code.

Chaired by former Australian Prudential Regulation Authority (APRA) deputy chair Helen Rowell, the three-member panel expressed its gratitude to all parties who submitted feedback during the review process.

The panel received 23 submissions from a broad range of stakeholders, including consumer groups, insurance companies, regulators, and other interested parties.

The feedback touched on key areas such as how the code applies to small businesses, consumer vulnerability, and ways to improve protections for policyholders, particularly in the aftermath of catastrophic events.

financial hardship provisions
support for vulnerable customers
clarifications on how the code interacts with legal requirements
application of the code to both retail and wholesale insurance
enhancements to claims handling procedures
addressing emerging challenges like affordability and risk reduction
the structure, enforcement, and governance of the code

Feedback on the General Insurance Code of Practice

Rowell, speaking on behalf of the review panel, thanked stakeholders for their participation.

She emphasised the essential role the code plays in supporting consumers in their interactions with insurers.

“It is clear that the code is an important document that supports consumers in their dealings with insurers and clarifies for insurers the ways in which they can best support consumers,” she said.

Rowell said that the review is a significant opportunity to strengthen protections for both individual and small business consumers.

“I look forward to working with the insurance industry on their response to our recommendations,” she said.

The General Insurance Code of Practice, which outlines service standards for insurers, undergoes review at least every three years.

The insurance watchdog has already been engaged in various initiatives to address customer service and industry conduct issues. These initiatives include:

Responding to the interim report, ICA CEO Andrew Hall stated that the insurance watchdog will carefully review the panel’s recommendations.

“We appreciate the thorough work of the independent panel and the constructive recommendations provided in this interim report,” he said.

He said that the ICA is committed to continuous improvement and will engage with its members and other stakeholders to develop a comprehensive response to the panel’s findings.