The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has announced its support for the proposed revisions to the General Insurance Code of Practice, following the release of an initial review report by an independent panel.
The General Insurance Code of Practice is a voluntary standard designed to outline the expected service levels for general insurers, with a focus on fairness and transparency in dealings with customers.
The code undergoes a review every three years to ensure it stays relevant to the evolving needs of the industry and consumers.
The current review, led by a panel chaired by former Australian Prudential Regulation Authority (APRA) deputy chair Helen Rowell, has highlighted key areas for potential improvement.
These include:
Enhancements to claims handling and management procedures are also under consideration.
Welcoming the key reforms, ANZIIF highlighted the need for the code to keep pace with industry changes, particularly in addressing the challenges faced by vulnerable customers.
It plans to launch a short course titled “Creating Good Outcomes for Customers Experiencing Vulnerabilities” at the end of September. The program aims to equip insurance professionals with the skills to better understand and support customers dealing with difficult circumstances.
ANZIIF CEO Katrina Shanks highlighted the industry’s commitment to improving consumer outcomes.
“We are working closely with [the industry] to develop professional development resources that will address areas of industry improvement,” she said.
The independent review panel, which also includes consumer advocate Gerard Brody and insurance industry representative Paul Muir, received 23 submissions from a range of stakeholders, including insurers, consumer groups, and regulators.
The feedback focused on improving protections for small businesses and consumers, particularly after natural disasters and other catastrophic events.
The panel’s initial report also suggested changes in areas such as the governance and enforcement of the code, as well as emerging issues like insurance affordability and risk reduction. These updates aim to ensure that the code continues to serve the needs of policyholders and insurers effectively.
“We are very thankful to all who provided submissions in response to the first consultation paper and the thoughtful way in which submitters engaged with the themes and issues outlined in the paper,” she said.
The Insurance Council of Australia (ICA) also responded positively to the initial report, with CEO Andrew Hall noting that the organisation will carefully review the recommendations and consult with its members to develop a response.
The ICA has been working on a range of initiatives to improve industry conduct and customer service, including a review of insurers’ responses to the 2022 Queensland and New South Wales floods. It also issued guidelines for insurers on how to use expert reports following extreme weather events, with the goal of improving outcomes for policyholders.
The review process will continue, with the panel expected to release a second consultation paper later in 2024.
