The benchmarks for dispute resolution schemes such as the Financial Ombudsman Service (FOS) could be updated to reflect the greater use of social media, the Insurance Council of Australia (ICA) has told a Commonwealth review of dispute resolution schemes.

ICA says consumer financial hardship could also be acknowledged in the six benchmarks of accessibility, fairness, accountability, efficiency, independence and effectiveness.

“Consideration could also be given to including a best practice model for scheme funding that best supports the benchmarks,” ICA says in its response to the Commonwealth Consumer Affairs Advisory Council issues paper on industry-based dispute schemes.

It says the principle of fairness should also be clarified, as it can be interpreted in more than one way.

ICA says the benchmarks are not well known to industry participants and financial services consumers.

Although ICA members believe the benchmarks remain relevant and appropriate as a guide for FOS, “they could be updated to reflect current practices, community awareness and technological advances”.

ICA says the past 10 years have seen a significant increase in the number of consumers using external dispute resolution, which suggests efforts to promote the schemes are working. But ICA supports initiatives to make them more accessible to under-represented sectors of the community.

Accessibility for customers with special needs could be clarified further, with minimum requirements established, ICA says.

“This is particularly important in light of the service channels and technology offerings today,” it says.