Wednesday, 18 December 2024

The Insurance Council of Australia (ICA) today welcomed the release of the Final Report by the Independent Code Review Panel and has accepted a large number of recommendations from both the Code Review and the House of Representatives Standing Committee on Economics report into insurers’ responses to 2022 major flood claims (Parliamentary Inquiry).

The General Insurance Code of Practice is independently reviewed at least every three years to ensure it remains relevant to maintaining and enhancing consumer protections, including for those who are vulnerable and facing financial hardship.

The Review of the Code commenced in November 2023 with an Initial Report being released by the Review Panel in September 2024 containing 101 recommendations.

The Final Report concluded that no additions or adjustments were required to the 101 recommendations outlined in the Initial Report which cover several areas, including financial hardship, customer vulnerability, and claims handling.

The Final Report considers the recommendations of the Parliamentary Inquiry and highlights similarities between the two sets of recommendations.

For this reason, insurers have reviewed recommendations from the Code Review and Parliamentary Inquiry concurrently.

The industry has published its response to 78 recommendations across both reports that can be supported or where the industry can work constructively with others to explore implementation.

These recommendations seek to improve products and processes for customers while ensuring healthy product competition and innovation.

The industry has already made progress towards implementing many of both sets of recommendations, including work on development of potential standardised maintenance/ wear and tear clauses and better identification and handling of vulnerable customers.

Further progress will be outlined in the forthcoming update of the industry-commissioned Deloitte Report. The finalisation of this update has been extended until early 2025 because of the focus on responding to the Code Review and Parliamentary Inquiry recommendations.

The ICA and insurers are committed to continuing to work closely with Australian governments, stakeholders, consumer representatives, and regulators to implement changes that improve the industry’s response to customers impacted by extreme weather events.

The industry will continue to work through the remaining recommendations in 2025.

Quotes attributable to ICA CEO Andrew Hall:

The release of the Final Report marks an important step in the insurance industry’s ongoing efforts to ensure the Code continues to serve customers.

I thank the Panel for their work in reviewing the Code, particularly its chair Helen Rowell, alongside all those who made valuable submissions.

The Insurance Council and its members appreciate the insights consumer advocates bring to making sure insurance works better for customers.

We look forward to continuing our work with consumer advocates in the new year to address the remaining key issues and recommendations.

The insurance industry is committed to enhancing and uplifting outcomes for customers - not just during a disaster, but systemically.

Tuesday, 17 September 2024

The Board of the Insurance Council of Australia (ICA) has announced Steve Johnston, Suncorp Chief Executive Officer and Managing Director, as Chair of the ICA Board.

Steve joined the ICA Board as a Director in August 2021 and will begin his term as Chair on 1 January 2025.

He succeeds Nick Hawkins, IAG Managing Director and CEO, who has served as President of the ICA Board for the past two years.

The Board chose to rename its head from President to Chair at its most recent meeting in line with contemporary practice.

Quote attributable to outgoing ICA President Nick Hawkins:

I wish to thank the Board of the Insurance Council of Australia for their support during my tenure as President.

Over the past two years, the insurance industry and its customers have faced many challenges, including Australia’s costliest floods. Over this time, the industry has worked hard to adapt and improve, to ensure our customers communities across Australia remain resilient and have the support they need.

I am certain that the Board is in capable hands with Steve leading the way in 2025, and I congratulate him on the appointment as Chair.

Quote attributable to incoming ICA Chair Steve Johnston:

I would like to express my appreciation to Nick Hawkins for his leadership, dedication and hard work over the past two years as President of the ICA Board.

Moving forward, I am confident that, alongside my fellow board members, ICA CEO Andrew Hall and the ICA team, we can continue to build strong partnerships with governments, communities, and regulators to address the protection gap and ensure the strength and sustainability of our sector for the benefit of our customers and the community.

Friday, 6 September 2024

The Insurance Council of Australia (ICA) welcomes today’s release of the interim report by the Independent Code Review Committee, undertaken as part of the Independent Review of the General Insurance Code of Practice.

The release of the report marks an important step in the insurance industry’s ongoing efforts to ensure the Code continues to serve customers.

The interim report contains 104 recommendations which cover a number of areas, including financial hardship, customer vulnerability, claims handling, enforceability and governance.

Alongside the development of the interim report, the ICA and its members have been actively engaged in multiple initiatives to address key issues related to customer service and conduct. These efforts include:

• Deloitte Report: commissioned by the ICA to investigate the performance of insurers following the 2022 floods in southeast Queensland and northern New South Wales. The industry is now undertaking a review of members’ progress against the recommendations.
• Expert reports best practice guidance standard: on 16 August 2024 the industry published the guidelines for the use of expert reports by insurers when a claim is lodged following an extreme weather event, to streamline efforts and drive better outcomes for impacted customers.
• Industry Fact Sheets: produced to better inform and assist customers with their insurance understanding.

In response to the interim report, the ICA will undertake a detailed review of its recommendations and engage with members and key stakeholders to prepare a whole-of-industry response.

Quote attributable to ICA CEO Andrew Hall:

The Code sets clear obligations for insurers and underscores the industry’s commitment to openness, fairness and honesty in all dealings with customers.

We appreciate the thorough work of the Independent Panel and the constructive recommendations provided in this interim report.

These insights will significantly contribute to the industry’s strategic approach and decision-making processes, as we strive to enhance the way we deal with our customers to align with industry and consumer expectations.

We are committed to continuous improvement to deliver better outcomes for customers.

Thursday, 18 April 2024

The Insurance Council of Australia (ICA) welcomes the release of the first consultation paper in connection with the review of the 2020 General Insurance Code of Practice (Code) and encourages stakeholders to provide feedback by making a written submission.

The Code sets high service standards that insurers must meet to ensure fair, open, and honest dealings with consumers and small businesses.

The independent three-person panel tasked to review the practical operation of the Code consists of former APRA Deputy Chair Helen Rowell, consumer expert Gerard Brody and insurance industry expert Paul Muir.

Their review aims to ensure the Code remains strong, relevant, and adaptable to maintain and enhance consumer protections and deliver the best possible outcomes for all customers including those who are vulnerable and facing financial hardship.

The key areas for stakeholder input in this first stage of the review include customer vulnerability, customers facing financial hardship, regulatory interaction and enhancing the Code’s enforceability.

The Independent Review Panel also invites submissions as to how the Code may improve insurers’ response to catastrophes recognising that this is connected to the key areas of the first stage of the review.

The ICA encourages stakeholders to submit written submissions by Friday 31 May. All submissions will be carefully considered by the Independent Review Panel.

To access the consultation paper and learn more about how to participate in the review process including how to lodge a written submission, please visit codeofpracticereview.com.au.

Quote attributable to ICA CEO Andrew Hall:

We encourage all stakeholders who interact with general insurance, whether individual or small business owners, consumer advocates, regulators, AFCA, Code Governance Committee, and general insurers to contribute their expertise and perspectives to the review process and lodge a written submission.

The first consultation paper is an important initial step in the process of the insurance industry developing a version of the Code which the ICA will submit to ASIC for approval.

The public’s input is crucial in shaping the future of the Code and ensuring it remains effective in addressing the challenges faced by Australians.

Sunday, 17 October 2021

The Insurance Council of Australia (ICA) will tomorrow commence a communications campaign informing consumers of their rights under the new and strengthened General Insurance Code of Practice.

It is the first time the ICA has run a paid communications campaign on the Insurance Code of Practice, demonstrating the insurance sector’s commitment to openness and fair dealings with customers.

The communications campaign, which has been developed and produced by agency Visibility for the ICA, will run primarily on key social channels, as well as on Sky News.

The new Code commenced on 1 July 2021, but was further updated earlier this month to align with ASIC’s Regulatory Guide on internal dispute resolution.

The Code has a range of new customer-centric provisions including:

• Sanctions for significant Code breaches of up to $100,000 in the form of Community Benefit Payments
• Independent enforcement through the Code Governance Committee
• Cost comparisons between new and previous policies on renewal notices
•  Responsibility for quality of repair work undertaken on behalf of insurers 
• Streamlined complaints process
• Mandatory standards for claims investigators
• Clear timeframes to respond to claims, complaints and information requests
• Cash settlements better explained

The new Code also includes commitments to providing customers with useful information to navigate key aspects of the claims handling process, such as understanding a scope of works and a cash settlement for a home building policy.

The Code changes have been developed by ICA members following consultation with key stakeholders including AFCA.

Comment attributable to Andrew Hall, CEO Insurance Council of Australia:

The General Insurance Code of Practice sets the standards that insurers agree to meet when interacting with their customers and is insurers’ commitment to openness, fairness and honesty in their dealings with customers.

The new Code contains many new and updated commitments which put customers at the centre of dealings with insurers.

Insurers are committed to providing customers with information about their rights under the new Code, which is why for the first time we are undertaking a campaign of this scope.

The Code of Practice campaign ads can be viewed here