In response to mounting frustrations and evidence of systemic failings, the Australian Consumers Insurance Lobby Inc. (ACIL) is calling for significant reforms to the General Insurance Code of Conduct. Recent trends have shown a marked increase in disputes between consumers and insurers, particularly highlighted during the hard market conditions and exacerbated by the 2022 flood events. These issues underscore a pressing need for comprehensive changes to the existing framework.
The current Code of Conduct, ACIL argues, is riddled with loopholes that insurers have exploited, failing to provide adequate protection for consumers during critical times. This exploitation was vividly demonstrated in the aftermath of the 2022 floods, where consumer grievances and the ineffectiveness of the Code were laid bare. The evidence, collected from a wide range of consumer experiences and presented during the flood inquiry, paints a damning picture of the current regulatory measures.
ACIL has formulated a robust set of 52 recommendations aimed at addressing these shortcomings. These recommendations are designed to tighten regulatory oversight, enhance transparency, and bolster consumer protections, ensuring that the Code not only meets but exceeds the expectations of Australian insurance policyholders.
ACIL Chair, Tyrone Shandiman, stated, "The current state of the Code is unacceptable and does not fulfill its purpose to protect consumers effectively. If significant enhancements are not integrated into the revised Code, ACIL will take further actions to ensure that the necessary protections are firmly established."
This call for change underscores ACIL’s commitment to advocating for a fairer and more accountable insurance industry. We urge all stakeholders within the industry to support these vital changes to ensure the Code truly serves the best interests of consumers.
