Best’s News & Research Service - July 02, 2014 10:04 AM (EDT)
Australian Insurers Adopt New Practice Code, Focus on Stronger Consumer Rights
SYDNEY, Australia //BestWire// - The Insurance Council of Australia has raised the bar for its members when it comes to dealing with customers, including settling claims and providing clearer information about policies, as it unveiled its new Code of Practice that it said ensures "stronger and clearer rights" for customers.
ICA Board President Mark Milliner said in a statement the development and launch of the new code followed a thorough independent review and extensive consultation with a range of consumer groups, government, regulators and industry.
"The insurance industry has delivered a Code of Practice that is a yardstick for industry self-regulation, which is especially important given the Federal Government's focus on reducing regulation and red tape for business," he said.
The first General Insurance Code of Practice was introduced in 1994. It has been reviewed four times -- in 1998, 2006, 2009 and 2012. Key features of the new code include stronger and more detailed obligations on code signatories to provide assistance to consumers in financial difficulty; clear guidance and time frames on insurance claims and complaints processes for consumers; and specifically written in plain, easy-to-read English.
ICA CEO Rob Whelan said continuous improvements to the code had ensured it remained relevant to industry and continued to meet and anticipate the changing needs of consumers.
"By enhancing the rights of consumers in the code, we have shown that industry self-regulation is relevant and powerful," he said in a statement.
"This is robust self-regulation and industry best-practice. ICA member companies and other signatories can feel proud of this code and the positive impact it will have on consumers and the industry itself."
To ensure compliance is effectively monitored and enforced, the new code introduces a new governance framework, the Code Governance Committee, which is a separate and independent entity from the ICA and code signatories.
The new code came into effect July 1 this year, but ICA members and other code participants have 12 months to transition to the revised code, with all signatories to be compliant by July 1, 2015.
The Insurance Council of Australia is the representative body of the general insurance industry in Australia. Its members represent more than 90% of total premium income written by private sector general insurers.
(By Ernesto Calucag, Hong Kong news editor: Ernesto.Calucag@ambest.com)