The Insurance Council of Australia (ICA) has submitted a strengthened General Insurance Code of Practice to the Australian Securities and Investments Commission (ASIC) following consultations with consumer groups, regulators, government and insurers. Announced on 22 October, the revised code aims to strengthen consumer protection through legally enforceable obligations, improved support for vulnerable customers and those experiencing financial hardship, and greater transparency and accountability in claims handling.
Under the revised code, obligations will be incorporated into consumer insurance contracts for the first time, giving customers contractual rights to enforce them through the courts. Home and motor claims will also be automatically accepted after 12 months if a decision has not been made due to circumstances within insurers' control. Other measures include stronger requirements for trauma-informed claims handling, cash settlements and expert reports, alongside a new framework for providing tailored support to vulnerable customers.
The revised code also expands family violence protections to include financial abuse and coercion, with key safeguards becoming contractually enforceable. It retains flexibility to accommodate the diverse products, customers, claims and third-party service providers across Australia's general insurance market. ASIC's approval would provide further assurance that the code meets the required standards and can be relied upon by consumers.