The General Insurance Code Governance Committee (CGC) has released its 2023-24 Annual Report, outlining its ongoing efforts to improve compliance and oversight in Australia’s insurance industry.
The report emphasised key actions taken over the past year, including:
CGC chair Veronique Ingram stated that the committee’s investigations have led to critical improvements across the industry.
“Our inquiry into the oversight of external experts revealed critical areas that needed attention, and we are pleased to see some meaningful change in the industry,” she said.
One of the CGC’s major actions during the 2023-24 financial year involved issuing its first-ever sanction against Allianz for significant breaches of the General Insurance Code of Practice.
Allianz was required to make a $50,000 payment to a community organisation, which Ingram described as an important step in demonstrating the committee’s commitment to enforcing the code and holding insurers accountable for serious violations.
“Issuing our first sanction was a significant part of our compliance monitoring this year,” she said.
The CGC also played a central role in the parliamentary inquiry into insurers’ responses to the 2022 floods, which led to critical observations about the sector’s performance.
“Our submission to the parliamentary inquiry called out areas where the industry needed to do better, and we are starting to see some positive developments now,” Ingram said.
Amid the General Insurance Code of Practice review, the CGC is advocating for expanded authority, including the ability to publicly name insurers who breach the code.
Ingram explained that transparency and accountability are critical to driving better outcomes for consumers.
“We are committed to working with all stakeholders to support the transition to a new, strengthened code that better serves customers,” she said.
The report also highlighted a shift in the CGC’s enforcement strategy, focusing on more proactive investigations and swifter responses to emerging risks.
“This is strengthening our oversight and our ability to ensure compliance with the code,” Ingram said.
In late 2023, the ICA initiated a review of the 2020 General Insurance Code of Practice.
A panel of industry and consumer experts leads the review. The panel has conducted the review in two phases, reflecting recommendations from the parliamentary inquiry into the insurance industry’s response to the 2022 floods.
The first phase focused on broader industry practices, such as protections for vulnerable customers.
The second phase, set for completion by mid-2025, will address flood-specific concerns and how the sector responded to catastrophic events.
