Australia’s corporate regulator is considering formal approval of a proposed General Insurance Code of Practice that would make its obligations contractually enforceable through insurers’ contracts with consumers.
The Insurance Council of Australia submitted the redrafted code on 22 October. It is the first time the industry body has sought ASIC approval under section 1101A of the Corporations Act.
The proposal follows an independent review and recommendations from a parliamentary inquiry into insurers’ responses to the 2022 floods. It would change standards on claims handling, expert reports, support for customers experiencing vulnerability, and protections connected with family violence.
Approval would not make ASIC responsible for monitoring or enforcing the code. The regulator will assess it against statutory criteria and its codes-of-conduct guidance, taking account of submissions received by 5pm AEDT on 23 December.
No approval decision has yet been made. The consultation is a preliminary regulatory step and the draft remains owned and developed by the Insurance Council.
