The Insurance Council of Australia (ICA) board today appointed Suncorp CEO Insurance Gary Dransfield as President and Chairman as it enters a crucial period following the approval of its new General Insurance Code of Practice.

Mr Dransfield’s appointment begins on January 1 for a two-year term, replacing current President and Chairman Richard Enthoven. GM Insurance at BT Financial Group Sue Houghton was appointed Deputy President.

The ICA board signed off on the new code today after one of the most extensive reviews in its 25-year history. It includes a renewed focus on vulnerable consumers and a $100,000 deterrent for significant breaches.

Participants will start transitioning to the new code from January 1 with all signatories to be compliant within 12 months.

All signatories will also be required to introduce and implement a publicly available policy to support customers affected by family violence by July 1 next year.

“The new code provides a significant improvement to consumer outcomes in their dealings with insurers, their distributors and their service providers,” Mr Enthoven said.

“We now have provisions for customers experiencing vulnerability, including a requirement for signatories to have a policy to support people affected by family violence and provisions for customers who are experiencing mental health conditions.

“The insurance industry has enhanced its financial hardship provisions. The code also provides enhanced sanction powers to the independent Code Governance Committee for breaches of the code, and includes a community benefit payment by insurers that commit significant breaches.”

Mr Enthoven says the code will help the insurance sector strengthen its reputation and relationship with customers, consumer advocates, regulators and governments.

“Though the review process started well before the announcement of the financial services royal commission, the code reflects royal commission recommendations alongside the Code Review Final Report and reports from a range of stakeholders.”

Consumer groups have broadly welcomed the changes.

Financial Rights Legal Centre Policy and Advocacy Officer Drew MacRae told insuranceNEWS.com.au most of its concerns have been tackled.

“The code has taken a pretty big and much-needed leap forward,” he said.

“Our key outstanding concern is whether it is enforceable. That might get dealt with when they seek Australian Securities and Investments Commission approval.”

The ICA board also appointed Natasha Fenech, CEO Medical Indemnity and Deputy Group CEO of Avant Mutual, as director. It accepted the resignation of outgoing Genworth Australia CEO Georgette Nicholas.

The board also ratified the membership application of Nib Travel Pty Ltd. The ICA now has 57 member companies.