The Insurance Council of Australia (ICA) will speed up vulnerable customer support provisions contained within the new General Insurance Code of Practice, due to the “unparalleled impact” of COVID-19.

However, the deadline for implementing the rest of the code has been put back by six months to July next year as insurers battle to cope with the effects of the virus and associated shutdown measures.

As previously reported by insuranceNEWS.com.au, the new code contains key consumer provisions covering vulnerable customers (part 9) and those suffering financial hardship (part 10).

ICA says insurers will fast-track these provisions by July 1 or earlier, bringing them forward by at least six months. The requirement to introduce and implement a family violence support policy was already set for July 1, and this remains.

“Insurers will take extra care with vulnerable customers so they can work with them to arrange additional support, including flexible options for customers experiencing financial hardship,” ICA said this afternoon.

“Insurers will fast-track these parts by putting in place temporary or short-term measures to achieve the consumer outcomes intended by these parts, if necessary. In delivering this, members will look to the principles that preface the code including transparency, fairness, support and integrity.”

Following an ICA board teleconference today, the deadline for implementing the rest of the code has been pushed back to July 2021, while the deadline for full technical compliance for parts 9 and 10 remains January 1.

ICA says insurance companies’ resources are stretched “due to the impact of COVID-19 and natural disaster recovery”, but that the extended implementation period “does not prevent insurers from adopting the code sooner”.

“The new code of practice is not a quick fix,” ICA CEO Rob Whelan said. “It is an important step forward for the Australian insurance industry and we want to implement it correctly.

“Like most businesses, insurers are deeply affected by the pandemic. They need to concentrate on providing urgent services to their customers.”