The General Insurance Code Governance Committee has told insurers to take action over a reported reluctance to accept consumer advocates’ standard authority forms.

The committee says financial counsellors raised concerns that insurers were not accepting such forms, instead requiring bespoke forms or insisting on individual rather than organisational authorities.

It says improvements have been made, and most insurers now accept standard authority forms, so it will not proceed with a formal review.

However, it has written to code subscribers to stress that some concerns remain.

It says insurers should have flexible processes that recognise standard authority forms; provide appropriate training to ensure compliance with authority requirements; ensure authority records are easily accessible by staff and third parties; and adhere to the signed authority.

The committee notes that paragraph 98 of the General Insurance Code of Practice requires insurers to “accommodate consumers’ support persons in all reasonable ways”.

It says financial counsellors should not be asked for personal identification or private details.

“While we acknowledge that progress has been made, further action is needed,” the committee says. “We will continue to monitor this issue and expect ongoing improvement.”

Click here to see the letter to subscribers.

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