Update on the Redrafted General Insurance Code of Practice

The General Insurance Code of Practice (the Code) is an industry code which outlines the standards that general insurer subscribers must meet when they offer and provide services to customers.   

It aims to make general insurance more accessible, effective and efficient, by making sure insurers act honestly, openly and fairly when conducting business with customers.

The Code applies to all retail general insurance products, including home contents, building, car, pet and travel insurance and some commercial insurance for small business.   

It covers a range of wholesale products, including small business and commercial insurance, and farm and primary industry.   

The Code does not apply to certain types of insurance, including statutory schemes like workers compensation, public liability or medical indemnity, motor vehicle injury and domestic builders’ insurance, warranty or indemnity, reinsurance, life or health insurance.   

The General Insurance Code of Practice (the Code) was first introduced in 1994 by the Insurance Council of Australia (Insurance Council) as a voluntary code.  

It is regularly reviewed and updated, most recently in 2020, and following that review clearer processes, expanded provisions for vulnerability and strengthened commitments were introduced relating to claims handling and financial hardship.  

The ICA has submitted the redrafted Code to ASIC to provide uplifted protections for consumers through legal enforceability. We are committed to getting this right so that the Code is fit-for-purpose now and into the future.  

The current Code will remain in place and continue to provide significant consumer protections in the interim. The Code Governance Committee will be continuing its close monitoring of the current Code.  

The newly redrafted Code takes into consideration findings and feedback across a number of publications and processes including commitments made in the March 2025 Industry Action Plan, published in response to the findings of the Independent Code Review and the Parliamentary Flood Inquiry. 

It additionally includes refinements following the public submission process that was undertaken from 24 June to 21 July 2026.  

About the Industry Action Plan
The General Insurance Industry Action Plan sets a clear direction for change to improve the customer experience and industry accountability in response to a number of reviews. More information can be found here.

About the Independent Code Review 
As part of the regular cycle of reviewing and updating the Code, the ICA commissioned an independent review of the 2020 Code in 2024. More information on the Independent Code Review can be found here.

About the Parliamentary Flood Inquiry
The 2022 floods across south-east Queensland and NSW were the costliest natural disaster in Australian insurance history. In response, the House of Representatives Standing Committee on Economics established a Parliamentary Inquiry into insurers’ responses to the 2022 floods, taking a whole-of-economy view of the challenges posed by intense and frequent flood events – examining claims handling, affordability, dispute resolution, and insurer preparedness. More information can be found here.

Public submissions process 

The public consultation period for the draft General Insurance Code of Practice ran from 24 June to 21 July 2026. Feedback from this process helped shape the development of the redrafted Code submitted to ASIC on 22 October 2026. 

The redrafted Code improves overall outcomes for consumers in a number of ways, including: 

• Legal enforceability: Code obligations are incorporated into consumer insurance contracts, giving customers a direct contractual right to enforce those obligations.  

• Automatic claim acceptance: home and motor claims will be automatically accepted after 12 months where no decision has been made due to circumstances within insurers’ control.  

• Better claims experiences: higher standards for trauma-informed claims handling and strengthened requirements for primary points of contact and cash settlements.  

• Stronger support for customers experiencing vulnerability: a new circumstance-based definition of Vulnerability recognising that vulnerability can be experienced by anyone, and a new Extra Care framework that commits insurers to tailored support and flexibility for customers who need it most.  

• Broader family violence protections: the definition of family violence now includes financial abuse and coercion, with key protections becoming contractually enforceable obligations.  

• Higher standards for expert reports: new obligations for insurers and external experts.  

This means that the redrafted Code (or parts of it) will be incorporated into insurance contracts by Code subscribers.  

Since the Code would be included in insurer contracts, if a breach of contract occurs, this gives the customer an option to challenge the breach in court.   

Other ways Code will be enforced include ongoing oversight by an independent code administrator, and through AFCA.  

The Redrafted Code has been developed through extensive direct consultation with consumer advocates, regulators, government, the General Insurance Code Governance Committee, AFCA, Code subscribers and other general insurers, drawing on recommendations from the Independent Code Review, the Parliamentary Flood Inquiry, and the Industry Action Plan. 

The General Insurance industry is seeking ASIC’s approval of the redrafted General Insurance Code of Practice. The Code will be assessed under ASIC Regulatory Guide 183 (RG 183), which sets out the process for approving codes of conduct in the financial services and credit sectors. 

Consultation Guide (Issued 24 June 2026)

Stakeholders were invited to comment on the redrafted General Insurance Code of Practice, giving consideration to the following areas: 

• The contractually enforceable nature of the redrafted Code 
• The consumer protections in the redrafted Code 
• Protections for customers experiencing vulnerability 
• The clarity and accessibility of the redrafted Code’s language 
• The applicability of the redrafted Code in the future 
• Any further recommendations. 

To help us maintain the integrity and quality of the consultation process, participants were requested to advise if they used AI to generate their response.