In a recent statement, the Insurance Council of Australia (ICA) reaffirmed its commitment to fortifying the General Insurance Code of Practice across several critical areas, including financial hardship, customer vulnerability, and claims handling.
Andrew Hall, CEO of the ICA, underscored the significance of the General Insurance Code of Practice, describing it as a pivotal document that provides essential guidance and sets clear expectations for both insurers and policyholders.
The ICA’s initiatives are encapsulated in its submission to the Independent Code Review Panel, which conducts a comprehensive review of the code every three years. Originally introduced in 1994, the code delineates the standards that general insurers must uphold in their interactions with customers. These standards encompass response times for claims processing, handling complaints, and providing information.
Representing insurers responsible for approximately 90% of Australia’s general insurance market, the ICA’s submission outlines several proposed enhancements:
Enhanced Financial Hardship Provisions: Introducing measures for premium relief to support customers facing financial difficulties.
Expanded Definitions of Vulnerability: Broadening the scope to include LGBT customers and recognizing the impact of financial abuse and trauma.
Improved Identification of At-Risk Individuals: Strengthening efforts to identify and assist customers vulnerable to financial abuse and trauma, particularly following severe weather events.
Extended Review Timeframes: Lengthening review periods for all general insurance claims, especially those arising from catastrophic events.
Enhanced Customer Communication: Committing to providing more transparent and informative updates on claim progress.
Acknowledging the ongoing reviews and inquiries within the industry, the ICA emphasized the importance of aligning changes to the code with finalized recommendations from these processes.
Hall remarked, “We believe these proposals will uphold the code’s commitment to customer protection while adapting to an evolving regulatory and operational landscape. The insurance industry has gleaned invaluable insights from recent catastrophic events, including the unprecedented floods of 2022.”
The ICA’s proactive stance underscores its dedication to enhancing industry standards and safeguarding consumer interests amidst challenging circumstances.
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