2026 submissions on the redrafted 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 intends for the rewritten Code to be approved by ASIC and 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 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.

The Industry Action Plan outlined that the redrafted Code should be consumer-centric, improve overall consumer protections and be easy to understand.

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.

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

Contractual enforceability: pending ASIC approval, the Code will be, for the first time, legally enforceable in consumer insurance contracts (except for the Principles and Section 10 on Enforcement). 

Automatic claim acceptance: home and motor claims will be automatically accepted after 12 months where no decision has been made, subject to defined exceptions. 

Stronger support for customers experiencing vulnerability: a new circumstances-based definition of Vulnerability, new supporting guidance on dealing with Vulnerability, and a new Extra Care framework setting out additional support and flexibility for vulnerable customers. 

Broader family violence protections: the definition of family violence now covers family and domestic violence, including financial abuse and coercion, and with key protections becoming contractually enforceable insurer obligations. 

Mental health: Previously separate guidance addressing mental health becoming contractually enforceable obligations. 

Better claims experiences: enhanced expectations for trauma-informed claims handling and strengthened requirements for primary points of contact and cash settlements. 

Higher standards for expert reports: new obligations for insurers and External Experts to comply with the Insurance Council’s Expert Report Best Practice Standard. 

Clarifications and streamlining: Such as a clarified definition of wholesale insurance and a streamlined Complaints section to reduce confusion for consumers 

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 you 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 Draft 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 will seek 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. 

The consultation period runs 24 June – 21 July 2026. 

Stakeholders are invited to comment on the redrafted General Insurance Code of Practice by making a submission and emailing it to the Insurance Council at [email protected].  

We invite submissions to give 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. 

Submissions will be published on the ICA’s website unless confidentiality is requested.  

In the event that AI is used to draft a submission, the ICA requests this is declared at the time of submission.