The Australian Securities and Investments Commission (ASIC) is seeking feedback on the Insurance Council of Australia’s (ICA) proposed new General Insurance Code of Practice as it considers approving the Code for the first time. According to the ICA, the proposal would make Code obligations contractually enforceable through insurers’ contracts with consumers. It also includes changes to claims handling, support for customers experiencing vulnerability, family violence protections and standards for expert reports.
The proposal follows an independent review and recommendations from the parliamentary inquiry into insurers’ responses to the 2022 floods. ASIC’s assessment will examine whether obligations can be enforced against subscribers, whether compliance monitoring arrangements are effective and whether standards exceed or clarify existing legal requirements. The ICA may revise the draft following further engagement with ASIC before submitting a final version for formal consideration. The Code remains owned and developed by the ICA, and approval would not make ASIC responsible for enforcing it or monitoring compliance.