Public consultation opens for review of General Insurance Code of Practice

Public consultation opens for review of General Insurance Code of Practice | Insurance Business Australia

Insurance News

Public consultation opens for review of General Insurance Code of Practice

Insurance watchdog encourages stakeholders to participate

Insurance News

By
Roxanne Libatique

An independent panel has initiated the first phase of a comprehensive review of the 2020 General Insurance Code of Practice by releasing a consultation paper and inviting public feedback.

The review is steered by a three-member panel led by Helen Rowell, the former deputy chair of the Australian Prudential Regulation Authority (APRA), and includes consumer advocate Gerard Brody and insurance sector expert Paul Muir.

Focus areas of independent panel reviewing General Insurance Code of Practice

The panel has outlined several key areas for public consultation:

strategies to better support customers who are vulnerable or facing financial challenges;
analysis of the code’s interaction with existing legislation to maximise its effectiveness; and
suggestions to strengthen the enforceability of the code.

The consultation aims to gather a wide range of feedback to ensure that the code continues to meet the evolving needs of consumers by setting essential service standards that all general insurers must adhere to.

Rowell emphasised the importance of participation from all stakeholders in refining the code.

“Feedback will help us ensure the code remains relevant, accessible, and offers strong consumer protections,” she said. “Stakeholders are also invited to make submissions as to whether the provisions of the code could be adjusted to improve insurers’ response to catastrophes as this is connected to the areas covered in the review. Customer protections is our top priority, and we will carefully consider all submissions received.”

ICA CEO Andrew Hall pointed out the importance of the review in shaping the future of the insurance industry.

“We encourage all stakeholders who interact with general insurance, whether individual or small business owners, consumer advocates, regulators, AFCA, Code Governance Committee, and general insurers to contribute their expertise and perspectives to the review process and lodge a written submission,” he said. “The public’s input is crucial in shaping the future of the code and ensuring it remains effective in addressing the challenges faced by Australians.”

Interested parties are encouraged to review the consultation document and submit their feedback through the official website, codeofpracticereview.com.au, by 5pm on Friday, May 31, 2024. The panel is scheduled to release its initial findings in mid-2024, following which the ICA will seek to formalise the new code based on the outcomes of the review.