The Independent Code Review Committee has issued its interim report on its review of the General Insurance Code of Practice, which contains 104 recommendations which cover a number of areas, including financial hardship, customer vulnerability, claims handling, enforceability and governance.
The key matters for consideration in the financial hardship area include eligibility for support, improving access to support, and improving compliance with commitments. In the consumer vulnerability area, the key issues to be considered include a principles-based approach to vulnerability, customer groups that may require extra care, training, and support, women’s financial safety, First Nation customers, mental health, etc
The Insurance Council of Australia (ICA) says that it welcomes the release of the report which marks an important step in the insurance industry’s ongoing efforts to ensure the Code continues to serve customers. Alongside the development of the interim report, the ICA and its members have been actively engaged in multiple initiatives to address key issues related to customer service and conduct.
In response to the interim report, the ICA will undertake a detailed review of the recommendations set out therein and engage with members and key stakeholders to prepare a whole-of-industry response.
ICA CEO Mr Andrew Hall said, “The Code sets clear obligations for insurers and underscores the industry’s commitment to openness, fairness, and honesty in all dealings with customers.
“We appreciate the thorough work of the Independent Panel and the constructive recommendations provided in this interim report. These insights will significantly contribute to the industry’s strategic approach and decision-making processes, as we strive to enhance the way we deal with our customers to align with industry and consumer expectations.”
The review, which started in November 2023, was conducted by former APRA deputy chair Helen Rowell (panel chair), consumer expert Gerard Brody, and industry expert Paul Muir. The review is conducted in two phases to align with any recommendations from the Federal Parliamentary Inquiry into insurers’ responses to the 2022 floods.
The first phase focused on general topics that are not directly related to the floods, such as support for vulnerable customers and the interaction between the Code and existing laws, and governance. Its outcome is summarised in the interim report. The second phase will focus on flood-related topics, such as the responses required when a catastrophe occurs, and will deliver findings by 30 June 2025.
The interim report can be found on this webpage.