Financial Services Minister Daniel Mulino says he doesn’t want the insurers’ code review to “drag on”, as the industry prepares to release a draft.

The review of the 2020 General Insurance Code of Practice was launched in November 2023, and the review committee released a final report, complete with more than 100 recommendations, in late 2024.

Last year the Insurance Council of Australia confirmed the code would be contractually enforceable and approved by the Australian Securities and Investments Commission, and as a result would be redrafted rather than tweaked.

insuranceNEWS.com.au understands a draft of the new code could be released for consultation as early as next week.

“I’m hoping to see it make some material progress soon,” Dr Mulino told insuranceNEWS.com.au.

“I don't think we want this to drag on much longer.

“I welcome the fact that it’s going to be ASIC-approved. I welcome the fact that it’s going to be contractually enforceable.

"But it is going to be important to see what some of those key clauses – like claims management, cash settlements, temporary accommodation, dispute resolution – look like. 

“I haven’t seen them yet, as is appropriate. They’re being negotiated by stakeholders.”

Dr Mulino spoke about the code during his speech to Tuesday’s insurance summit held by the Australian Financial Review in Sydney.

He said there are limits to what disclosure to customers can achieve, and that the code provides important “minimum standards” and guardrails.

“I think the codes can set clear signals and expectations around fairness, claims handling and communication and that this is very important for the way the industry builds up trust and the way it interacts with its consumer base.”

---

From the latest Insurance News magazine: We sit down for a wide-ranging interview with Lloyd's chief Patrick Tiernan

---