Wednesday, 24 June 2026
The Insurance Council of Australia has today opened public consultation to seek feedback on the new draft General Insurance Code of Practice.
The new draft Code has been rewritten to enhance consumer outcomes in a changing insurance and customer environment.
The draft Code has been developed through extensive consultation with consumer advocates, regulators, and general insurance providers.
It draws on the Industry Action Plan, released in March 2025, which followed recommendations from the Independent Code Review and the Parliamentary Flood Inquiry.
The redrafted Code delivers a significant uplift in protections for consumers, including:
- Legal enforceability: pending ASIC approval, the Code will be enforceable in consumer contracts (except for the Principles and Section 10 on Enforcement), making the Code legally enforceable as part of an insurance contract for the first time.
- 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 and a new Extra Care framework set 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, with key protections becoming contractually enforceable insurer 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.
The current Code will remain in place and continue to provide strong consumer protections while the Code is under review.
Information on making a submission is available on the Insurance Council website, with consultation open until 21 July 2026.
Quotes attributable to ICA CEO Andrew Hall:
The world has changed and the Code needs to keep pace with those changes; customers face more frequent extreme weather, more complex claims, and new technology that is reshaping every part of the insurance process.
This is a real uplift in consumer protections, with real practical changes that put the customer first.
For the first time, insurers' key commitments under the Code will be legally enforceable, claims left undecided after 12 months will be automatically accepted, and new vulnerability protections provide greater support for customers who need it most.
We want this Code to be the strongest it can be, and we look forward to hearing from anyone with feedback before consultation closes on 21 July.
