Premium funders are completing a final round of consultations on an inaugural code of practice, with the Australian Finance Industry Association (AFIA) aiming to publish the finalised document before the end of the year.

“We have taken on board feedback received from stakeholders during our initial rounds of consultation, and now it is time to test some changes we’ve made to make sure they capture the sentiment and intent of their feedback,” AFIA CEO Diane Tate said today.

‘We’ve tightened some sections and expanded others to make sure the industry’s commitments are clear and reflect stakeholders’ expectations about how to deliver better customer outcomes.”

The AFIA Insurance Premium Funding (IPF) working group includes BOQ Finance, Clearmatch, Elantis, Hunter Premium Funding, IQumulate and Westpac.

“Having received mixed feedback, we’re specifically consulting on the best approach to disclosure to ensure customers clearly and easily understand the cost of their IPF product and can compare with other IPF products in the market,” Ms Tate said.

Insurance premium funding is fundamental for small businesses, giving them flexibility in managing cashflows and ensuring they have the right protection in place, with cashflow and risk management particularly important during the current economic uncertainty, she says.

AFIA is also working on the establishment and appointment of an independent Code Compliance Committee, which will give the document “real teeth”. The code is expected to take effect from July.

Code commitments include ensuring customers have access to hardship assistance and providing customers with access to internal complaints processes, and the right to take a dispute to the Australian Financial Complaints Authority (AFCA) if it can’t be resolved.

The code commits members to act honestly and with integrity to treat customers fairly and reasonably, and promotes continuous improvement of customer service and a culture of professionalism in the IPF industry.

Stakeholders involved in the final consultations will include the National Insurance Brokers Association, and others that provided input previously, such as AFCA, the Australian Small Business and Family Enterprise Ombudsman and the Australian Securities and Investments Commission.

Those who would like to be involved in the consultation can contact AFIA by emailing info@afia.asn.au.