Suncorp boss Steve Johnston takes helm at ICA amid code reforms
Suncorp boss Steve Johnston takes helm at ICA amid code reforms | Insurance Business Australia
Insurance News
Suncorp boss Steve Johnston takes helm at ICA amid code reforms
Leadership rename aligns with current governance trends
Insurance News
By
Roxanne Libatique
Johnston (pictured), a director on the ICA board since Aug. 2021, will succeed Nick Hawkins, CEO and managing director of Insurance Australia Group (IAG), who has led the board for the past two years.
Johnston’s appointment comes at a pivotal time as the ICA navigates significant reforms to the General Insurance Code of Practice. These reforms are aimed at improving the industry’s approach to customer protection, particularly around financial hardship, support for vulnerable consumers, and claims processing.
The changes follow recommendations from an independent review panel chaired by former Australian Prudential Regulation Authority (APRA) deputy chair Helen Rowell.
ICA’s new chair
In response to his new role, Johnston acknowledged the importance of the ongoing reforms, emphasising that the ICA would continue to work closely with governments, regulators, and industry stakeholders to address critical issues in the insurance market.
“I am confident that, alongside my fellow board members, ICA CEO Andrew Hall, and the ICA team, we can continue to build strong partnerships with governments, communities, and regulators to address the protection gap and ensure the strength and sustainability of our sector for the benefit of our customers and the community,” he said.
The ICA recently renamed its leadership position from president to chair, in line with current governance trends.
ICA’s outgoing president
Nick Hawkins, the outgoing president, reflected on the challenges faced by the industry during his tenure, including Australia’s costliest floods. He noted that while these events tested the sector, they also highlighted the need for the reforms now underway.
“The industry has worked hard to adapt and improve to ensure our customers communities across Australia remain resilient and have the support they need,” he said, adding that he is confident that Johnston will continue to guide the ICA through significant changes.
“I am certain that the board is in capable hands with Steve leading the way in 2025, and I congratulate him on the appointment as chair,” Hawkins said.
The panel reviewed feedback from a wide range of stakeholders, including insurance companies, consumer groups, and regulators, who raised concerns about areas such as claims handling, legal compliance, and customer vulnerability.
The report outlined several key areas for reform, including:
enhanced support for policyholders experiencing financial hardship
improvements in claims processing
more clarity around the interaction between the code and legal obligations
Another important recommendation is extending the code’s applicability to both retail and wholesale insurance.
Rowell emphasised the code’s role in ensuring consumers are supported by insurers, particularly following large-scale disasters. She described the review as an important opportunity for the industry to strengthen its practices.
“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.
A second consultation paper is expected to be released by the end of 2024, with the ICA aiming to implement the updated code after the review is completed.
ICA’s response to General Insurance Code of Practice reforms
With the release of the initial findings from the review, the ICA is preparing to address the recommendations and align industry practices with the new expectations.
ICA CEO Andrew Hall welcomed the panel’s interim report, noting that the insurance watchdog will work closely with insurers and stakeholders to ensure the code is effectively updated and implemented.
“We appreciate the thorough work of the independent panel and the constructive recommendations provided in this interim report,” he said.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
