Australia’s main consumer organisation believes that the insurance industry’s revised code of conduct could benefit from the recently developed banking industry code of practice.

Australian Consumers' Association CEO Peter Kell says the insurance industry code, which has been revamped by the Insurance Council of Australia, has many positives, and his organisation welcomes the extensions to coverage and the commitment to seeking Australian Securities and Investments Commission approval.

“It would horrify most industries to suggest they’d have something to learn from the banks in terms of customer relationships,” he said. “Nonetheless, the recent banking code is a very useful comparison.”

Mr Kell told Sunrise Exchange News that the banking code of practice, released on August 1, communicates directly with consumers – more so than the general insurance code does.

“The [insurance] code should be ambitious and in some senses aspirational,” he says. “The banking code has also been through a consultation process. It contains a good balance between the aspirational aspects and some of the practical commitments needed to make it workable.”

Submissions on the revised insurance code of conduct are due on September 8.