A General Insurance Code of Practice review has recommended few changes in handing the system a clean bill of health.

Speaking after the first review of the current code since its inception three years ago, independent reviewer Robert Cornall says the most common view expressed during consultation “was that the code is working well”.

A final report released by the Insurance Council of Australia (ICA) last week includes 10 recommendations, including changes to certain wordings in the code that relate to financial hardship.

The review also proposes the Financial Ombudsman Service (FOS) supply regular industry information to the code compliance committee to promote more effective compliance monitoring.

Although the review affirms the code’s application to both wholesale and retail general insurance, both FOS and ICA are urged to consider options to minimise unnecessary compliance burden on wholesale insurers.

Other recommendations suggest changes to existing clauses in order to clarify terms or improve administrative procedures.

Mr Cornall says many of the 20 submissions received expressed concern about financial hardship, with some customers having difficulty meeting lump sum premium or excess payments.

He says insurers should consider the offer of fortnightly premium instalments through facilities such as direct debit or social welfare system Centrepay.

[Should insurers be doing more to help low income and disadvantaged customers? See page 50 of the December/January edition of insuranceNEWS (the magazine).]