The independent panel reviewing the General Insurance Code of Practice has released an initial consultation paper seeking feedback on areas including financial hardship, customer vulnerability, enforceability and claims handling.

The panel will make recommendations on revisions to the 2020 version of the code, which came into effect after the Hayne royal commission proposed a slew of changes in financial services laws and regulations. 

“Crucially, the environment in which insurers operate and community expectations of insurers have continued to evolve, particularly in light of the heightened frequency and severity of severe weather events and the impact of the covid-19 pandemic,” the paper says.

The panel will publish a first report that looks at a range of general topics by the middle of this year. The second and final report may include additional findings and recommendations arising from the federal parliamentary floods inquiry.

The Insurance Council of Australia (ICA) has said it will submit the finalised updated code to the Australian Securities and Investments Commission for approval. 

“The public’s input is crucial in shaping the future of the code and ensuring it remains effective in addressing the challenges faced by Australians,” ICA CEO Andrew Hall said today. 

ICA is encouraging all those who interact with the industry to contribute their perspectives, including individuals, small business owners, consumer advocates, regulators, insurers, the Australian Financial Complaints Authority and the Code Governance Committee. 

The first phase of the review, while ranging broadly, will also look at information and feedback provided in the context of the flood inquiry and relating to catastrophes more generally. 

Consultation questions include whether the code is in line with community expectations around customer vulnerability and, if not, how it can be improved.  

It considers the way the code interacts with existing laws and whether advancements or clarifications are needed given recently introduced legislation and regulations. 

The paper asks how the code could be enhanced to improve understanding and better protect customers where cash settlements are used, and seeks feedback on concerns that have been raised about the quality, consistency and accessibility of expert reports.

The paper asks if the Code Governance Committee should be able to name subscribers that commit substantial breaches, and it seeks input on which provisions could be enforceable as part of ASIC’s code approval process. 

The independent review panel is chaired by former Australian Prudential Regulation Authority Deputy Chair Helen Rowell and includes consumer expert Gerard Brody and industry expert Paul Muir. 

“Feedback will help us ensure the code remains relevant, accessible, and offers strong consumer protections,” Ms Rowell said. “This is why it is essential that everyone has an opportunity to have their voice heard during the review process.”

Submissions on the initial consultation paper are due by the end of next month. More information is available here.