The Insurance Council of Australia (ICA) has announced its support for significant enhancements to the General Insurance Code of Practice (the Code), focusing on key areas such as financial hardship, customer vulnerability, and claims handling.
In its recent submission to the Independent Code Review Panel, currently conducting a triennial review of the Code, the ICA outlined several proposed amendments aimed at bolstering consumer protection and service standards.
First implemented in 1994, the Code delineates the standards general insurers must adhere to when delivering services, including timelines for responding to claims, complaints, and customer inquiries.
Drawing on insights from its members, who account for approximately 90 percent of all general insurance provided in Australia, the ICA has recommended the following changes:
- Enhanced Financial Hardship Provisions: Introduce premium relief options to better support customers facing financial difficulties.
- Expanded Definitions of Vulnerability: Broaden the scope to include LGBT customers and acknowledge the impacts of financial abuse and trauma.
- Improved Identification of At-Risk Individuals: Focus on those susceptible to financial abuse and trauma, especially following catastrophic weather events.
- Extended Review Timeframes for Claims: Apply longer review periods for all general insurance claims, particularly those arising from severe weather events.
- Meaningful Claim Updates: Ensure that insurers provide more substantial and useful updates on claim progress to customers.
The ICA has suggested that any modifications to the Code should be postponed until the completion and consideration of various ongoing significant reviews and inquiries.
Additionally, the ICA advocates for a principles-based Code, which would grant insurers the flexibility to tailor their support and solutions to meet the specific vulnerabilities and circumstances of their customers.
