The Insurance Council of Australia (ICA) lodged its revised General Insurance Code of Practice with the Australian Securities and Investments Commission (ASIC) on 22 October, after consultation with consumer groups, regulators, government and insurers. ASIC will now consider whether to approve it.
The main change is legal. For the first time, key Code obligations would be written into consumer insurance contracts, so policyholders could enforce them in the courts, through the Australian Financial Complaints Authority (AFCA) or through an independent Code Governance Committee.
Under the draft, home and motor property claims would be accepted automatically if no decision is made within 12 months for reasons within the insurer's control. Insurance Business reported that insurers would have four months to decide a claim or explain a delay in writing, that a senior review must take place at least three months before the 12-month point, and that external experts would have 60 business days to report. The Code also adds a circumstance-based definition of vulnerability, an "Extra Care" framework, financial abuse and coercion within its family violence definition, and stronger cash settlement requirements.
The revision follows scrutiny of insurer conduct after the 2022 floods, including a 2024 parliamentary inquiry that made 86 recommendations. AFCA received 36,022 general insurance complaints in 2025-26, up 5%, and complaints about claim delays rose 25% to 8,246, Insurance Business reported. The National Insurance Brokers Association backed stronger protections but warned that clauses letting insurers meet obligations by informing the broker could limit them.
If ASIC approves the Code, a transition period will apply before it covers new and renewed policies.
Read the source
Insurance Council of Australia ↗Industry body · 22 Oct 2026
This is an original brief based on the linked publication. Company statements and forecasts are attributed to their source.
