Review panel dives into initial feedback on General Insurance Code of Practice
Review panel dives into initial feedback on General Insurance Code of Practice | Insurance Business Australia
Insurance News
Review panel dives into initial feedback on General Insurance Code of Practice
Code review comprises two phases
Insurance News
By
Roxanne Libatique
The Independent Review Panel for the General Insurance Code of Practice is reviewing the feedback received for its initial consultation paper.
Stakeholders were invited to provide their input between April and June 2024. These submissions, now available on the Code Review website, are being analysed to shape the panel’s initial report and recommendations.
Initial consultation paper on General Insurance Code of Practice review
The initial consultation paper examined issues outlined in the terms of reference and ideas generated during the consultation process. A total of 22 public submissions were made.
“The review panel is currently reviewing the feedback and suggestions, and will prepare its first report in the coming months,” she said.
Phases of the General Insurance Code of Practice review
The initial phase of the code review focused on general topics, such as support for vulnerable customers, the interaction between the code and existing laws, and current governance structures.
The second phase will concentrate on flood-related issues, incorporating recommendations from the Federal Parliamentary Inquiry into insurers’ responses to the 2022 floods, with findings expected in September 2024.
Further opportunities for stakeholder feedback will be provided during the second phase.
The Insurance Council of Australia (ICA) was among those that provided feedback on the initial consultation paper.
Based on member feedback, the general insurance watchdog suggested the following changes:
enhanced provisions for financial hardship, such as options for premium relief
broadened definitions of vulnerability to include LGBT individuals and recognize financial abuse and trauma
improved methods for identifying those at risk of financial abuse and trauma, especially after severe weather events
extended review periods for claim decisions following catastrophic weather events; and
more frequent updates on claim progress provided to customers
The ICA has advised delaying any changes to the code until the completion of several significant ongoing reviews and inquiries.
“The General Insurance Code of Practice is a vitally important document for our industry and its customers, providing guidance and setting expectations for insurers and policyholders alike,” said ICA CEO Andrew Hall. “The Insurance Council’s submission to the Independent Review Panel, which has been drafted in consultation with our members, proposes sensible and workable solutions for strengthening the code while maintaining its operational efficiency and effectiveness.”
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