ICA proposes updates to insurance code

The code was first introduced in 1994.

Australia’s Insurance Council (ICA) emphasised its support for solidifying the General Insurance Code of Practice (code) in a number of areas, including financial hardship, customer vulnerability, and claims handling.

“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,” CEO of the ICA, Andrew Hall, said in a statement.

These proposed changes are part of the ICA's submission to the Independent Code Review Panel, which reviews the code every three years.

First introduced in 1994, the code outlines the standards general insurers must meet when serving customers, including response times for claims, complaints, and information requests. 

The ICA's submission, reflecting the views of its members who provide about 90% of Australia's general insurance, proposes several changes:

• Enhanced financial hardship provisions for premium relief.
• Expanded definitions of vulnerability to include LGBT customers and recognise the impact of financial abuse and trauma.
• Improved identification of those most at risk of financial abuse and trauma, especially after catastrophic weather events.
• Extended review timeframes for all general insurance claims, particularly those following catastrophic events.
• More meaningful and useful updates on claim progress for customers.

Given the numerous ongoing reviews and inquiries, the ICA suggests that changes to the code should wait until these are completed and their recommendations finalised.

“We believe these proposals would see the code continue to prioritise customer protections whilst remaining responsive to our changing regulatory landscape and operating environment, which is still providing some of the most challenging circumstances for insurers and their customers ever seen. The industry has drawn on a number of lessons learned from the record-breaking floods of 2022 and many of the declared catastrophic events since then.” Hall concluded.