The Insurance Council of Australia (ICA) has delayed lodging its revised General Insurance Code of Practice with the Australian Securities and Investments Commission (ASIC), citing the volume and complexity of stakeholder feedback received during the consultation process as industry and consumer groups remain divided over key reforms.
The Code review, which is intended to strengthen consumer protections and modernise industry standards, was originally expected to be lodged with ASIC earlier. However, the ICA has now pushed the timetable back to late October to allow more time to consider submissions and continue consultation.
According to the ICA, the consultation period closed on 21 July, with the organisation receiving 28 submissions from consumer representatives, insurers and other stakeholders before additional feedback was also provided. The industry body said the breadth of views, requests from some stakeholders for more consultation time and the potential operational impacts of the proposed changes all contributed to the decision to extend the process.
The delay follows reports by online magazine, Insurance Business that significant differences remain between insurers and consumer advocates over elements of the proposed Code, prompting the ICA to allow additional time to seek common ground before submitting the final draft to ASIC.
The revised Code proposes several major changes, including making key insurer commitments legally enforceable as part of insurance contracts for the first time, subject to ASIC approval. It also introduces automatic acceptance of home and motor insurance claims that remain undecided after 12 months, except in defined circumstances, together with stronger protections for customers experiencing vulnerability, expanded family violence provisions, improved claims handling standards and higher requirements for expert reports.
ICA CEO Andrew Hall said the revised Code reflected the changing nature of the insurance environment.
"The world has changed and the Code needs to keep pace with those changes; customers face more frequent extreme weather, more complex claims, and new technology that is reshaping every part of the insurance process," Hall said.
The ICA said it remains committed to a transparent review process and will publish submissions, subject to confidentiality requirements, before providing its response ahead of lodging the revised Code with ASIC later this year. Until then, the existing General Insurance Code of Practice will remain in force.
Read the full Insurance Business magazine article here.