The swift pace of regulatory change in the insurance industry continues, with the decision by the Insurance Council to revamp its wide-ranging code of practice. The self-regulatory code is designed to “raise the bar on customer service”, according to ICA Executive Director Alan Mason.

Speaking last week at the industry’s major Canberra conference, he said the insurance industry wants a balance between enforced industry regulation and self-regulation. “We want a good, strong regulatory framework, but we also want the opportunity to compete and to self-regulate, and not be too weighed down by black letter law.”

A draft of the new code will be launched in the next few weeks. ICA President Raymond Jones says the new version will follow the same lines as the present code, which stipulates standards of best practice, promotes disclosure of information and requires insurers to establish internal and external complaints-handling procedures.

“The insurance industry recognises that it needs to be one step ahead of regulation in terms of customer service standards,” Mr Jones said. “The new code goes beyond compliance and reflects the industry’s core values of leadership, honesty and integrity, competition in a free market, community mindedness, innovation, and a commitment to professionalism and excellence.”

Senator Ian Campbell, Parliamentary Secretary to the Federal Treasurer, said the Government welcomes the new code, which will go beyond the requirements of the FSRA by addressing areas such as customer communications, claims-handling and dispute resolution.