The Association of Insurance Building and Engineering Consultants has urged the General Insurance Code Governance Committee to push for a new best practice standard on engaging experts.

Its submission to a monitoring priorities consultation recommends the committee ask the Insurance Council of Australia to liaise with AiBEC and industry to develop the standard.

The proposal comes from the association’s Allied Supporter Advisory Committee, which held sessions to consider challenges and how the code committee can drive practices to improve claims outcomes. 

“[The advisory committee] is of the view that some of the shortcomings in claims stem from inadequate initial instructions from insurers, and that improvements in this area will lead to more satisfactory claim settlements,” the submission says.

The proposed standard would be in addition to the best practice standard for the use of expert reports, which ICA released last August.

“We look forward to positively engaging with [the code committee] and ICA in the near future and offering our continued support in striving to improve quality in expert reporting, and training and efforts in collaborating in the development of our recommended [standard],” AiBEC says in a LinkedIn post.

The submission sets out 16 suggestions for the standard. These include having templates for insurers to prompt for minimum information needs, and having assessment and causation report and scope of work templates to guide experts on regulatory requirements. 

It suggests matters typically considered by the Australian Financial Complaints Authority when deciding dispute outcomes should be included, such as wear and tear and maintenance.

Information to be provided to customers – such as on the independence of experts and what to expect during the process – could be provided and the standard should include vulnerability considerations.

The submission proposes avenues for feedback on shortcomings in initial instructions, and early triaging by experts to identify when additional expertise may be needed. It says insurer instructions should be included in the report.

“Information/reports obtained by insurers through prior interactions, that are relevant to the expert reporting, should be provided to them where it is clear that the outcome for the customer will not be prejudiced,” AiBEC says.

Experts’ safety considerations, including around hazardous materials or interactions at the site, are also flagged.

“AiBEC aims to improve claims outcomes for insurers and consumers by improving the claims handling experience, and we believe development of a Best Practice for Engagement of Experts by ICA with input from AiBEC and others is a positive step,” the submission says.