The Insurance Council of Australia (ICA) has revealed that a three-person panel of experts with backgrounds in insurance, consumer advocacy, and financial regulation will review the 2020 General Insurance Code of Practice.
The code, which must be independently reviewed every three years, outlines the minimum standards of service and conduct that Australian general insurers must meet when engaging with customers.
In a release, the ICA confirmed that former Australian Prudential Regulation Authority (APRA) Deputy Chair Helen Rowell (panel chair), consumer expert Gerard Brody, and industry expert Paul Muir will conduct the review.
The industry experts will review the code in two phases to align with recommendations from the Federal Parliamentary Inquiry into insurers' responses to the 2022 floods.
The first phase will focus on general topics that are not directly related to the 2022 floods, including support for vulnerable customers and the interaction between the code and existing laws. It will also focus on governance. The initial findings and recommendations will be delivered by June 30, 2024.
The second phase will focus on flood-related topics, including the responses required when a catastrophe occurs. The findings will be delivered by June 30, 2025.
The industry experts will consider a key recommendation from Deloitte's review of the Australian insurance industry's response to the 2022 floods – that the Extraordinary Catastrophe definition in the General Insurance Code of Practice must be reworked. They will also consult key stakeholders, including the Australian general insurance industry, APRA, the Australian Securities and Investments Commission, the Australian Financial Complaints Authority, the Code Governance Committee, and consumer representatives.
ICA CEO Andrew Hall said the insurance industry looks forward to the review, which aims to ensure the industry code remains relevant and effective in supporting and protecting customers.
“Each of the three-person panel brings considerable experience and has been appointed in recognition of the diversity of skills and background needed to inform an independent review, and I want to thank them in advance for their willingness to undertake this important task,” he said. “I know the panel will conduct a comprehensive and robust review of the code, and that their findings and recommendations will help make the code even more effective in supporting and protecting consumers.”
