“Game-changing” reforms following the Hayne royal commission cannot fail to affect the general insurance industry, the Insurance Council of Australia (ICA) warns.

CEO Rob Whelan told the ICA annual dinner in Sydney on Thursday that the “raft of regulatory change” will be a challenge to implement, because the complexities are not always properly understood.

“In some respects, the recommendations are less than clear in their intent,” he said.

“And there are the interaction effects between recommendations, existing law and prospective legislation – not all of which are fully understood.

“Nevertheless, we must adapt to these changes and implement in a way that ensures the industry remains efficient, competitive and delivering positive consumer outcomes.”

Mr Whelan says the new draft General Insurance Code of Practice which was presented to the ICA board last week will be critical to the industry’s future.

“Accommodating the needs of a diverse community and the demands for greater accountability through enforcement has put considerable strains on the development of a new code,” he said.

“Balancing the flexibility and principled intentions that [Royal Commissioner Kenneth] Hayne considered essential in a code with the hardwired legally enforceable commitments he also required is a challenge.

“Difficult as it may be, we must strike that balance to ensure the code delivers the enhanced consumer focus that will continue to drive our industry forward.”