The Insurance Council of Australia has released an action plan that includes responses to remaining recommendations from the parliamentary floods inquiry and the code of practice review.

Of the 150 recommendations for insurers, 109 are agreed or agreed in principle, 28 require further investigation by industry, 10 require individual insurers to determine the practicality or appropriateness of implementation, and three are not supported. 

In December, ICA released an initial response to 78 of the 187 recommendations from both reviews, which included considerable overlap and 37 that were aimed at governments, regulators or other stakeholders.

The proposals with which ICA disagrees relate to code changes to ensure people paying home and motor polices monthly do not pay more, and that the code require renewal quotes to not be more expensive than those for new customers.

“It is not the purpose, nor is it appropriate, for the code to prescribe insurers’ pricing approach. Further, insurers cannot implement this in the code due to competition law constraints,” the response document says.

On some issues where introducing changes in the exact form proposed was not considered possible or practical, the industry has identified or is working to identify alternative pathways to deliver the intent of the recommendation.

The action plan also includes responses to recommendations made by the parliamentary inquiry into the impacts of climate change on premiums, and an inquiry into financial abuse.

CEO Andrew Hall says the action plan includes themes for change that will guide the industry over the next couple of years and builds on work already started, with improving the customer experience central to work to be undertaken.

“Through this action plan, we are seeking to ensure that customers experiencing vulnerability are appropriately identified and supported, insurers have the appropriate systems and processes to respond effectively to increasing natural disasters and provide the best possible customer experience, and that the industry demonstrates strong governance and is accountable and transparent,” he said.

“We are extremely mindful that the cumulative impacts of these changes do not contribute to further increasing premiums or exacerbating existing affordability issues.”

Mr Hall says insurers will work with consumer advocates, regulators and the government to “ensure our actions remain relevant and suitable in addressing the root causes of the problems identified”.

The full response is available here.