The Insurance Council of Australia (ICA) has expressed strong support for enhancing the General Insurance Code of Practice (Code) in several key areas, including financial hardship, customer vulnerability, and claims handling.
These proposed enhancements are detailed in the peak insurance body’s submission to the Independent Code Review Panel, which is currently conducting a triennial review of the Code.
Originally introduced in 1994, the Code outlines the standards that general insurers must adhere to when delivering services to their customers. It also specifies the timeframes for insurers to respond to claims, complaints, and customer information requests.
The ICA’s submission reflects the views of its members, who collectively account for approximately 90% of all general insurance in Australia.
The proposed changes include:
- Enhanced Financial Hardship Provisions: Implementing premium relief options to support customers facing financial difficulties.
- Expanded Definitions of Vulnerability: Broadening the definitions to better include LGBT customers and recognize the impacts of financial abuse and trauma.
- Improved Identification of At-Risk Individuals: Enhancing mechanisms to identify those most vulnerable to financial abuse and trauma, particularly in the aftermath of catastrophic weather events.
- Extended Review Timeframes for Claims Decisions: Allowing more time for reviewing general insurance claims, especially those made following catastrophic weather events.
- Meaningful Claims Progress Updates: Providing customers with updates on claim progress that are more substantial and beneficial.
The ICA has suggested that any changes to the Code should be postponed until the completion of several significant ongoing reviews and the finalization of their recommendations.
The submission supports a principles-based approach to the Code, allowing insurers the flexibility to offer tailored support and solutions based on customers’ specific vulnerabilities and circumstances.
Quote from ICA CEO Andrew Hall:
“The General Insurance Code of Practice is a critically important document for our industry and its customers, offering guidance and setting expectations for both insurers and policyholders.
The Insurance Council’s submission to the Independent Review Panel, developed in collaboration with our members, proposes practical and effective solutions for enhancing the Code while maintaining its operational efficiency and effectiveness.
We believe these proposals will ensure the Code continues to prioritize customer protections while remaining adaptable to our evolving regulatory landscape and operating environment, which presents some of the most challenging circumstances insurers and their customers have ever faced.
The industry has learned numerous lessons from the record-breaking floods of 2022 and subsequent declared catastrophic events.”
These proposed changes reflect the ICA’s commitment to improving customer protection and support within the insurance industry.