NEWS

ACIL Labels ICA’s Code Review Response a ‘Predictably Superficial”

The Australian Consumers Insurance Lobby (ACIL) has today released a groundbreaking report titled "Falling Short: Why the Industries Initial Response Fails to Deliver Meaningful Reform in the Code of Practice." This comprehensive analysis critiques the Insurance Council of Australia's (ICA) initial response to the General Insurance Code of Practice Review, revealing systemic shortcomings that leave Australian consumers vulnerable.

Click the below link to access ACIL's Report

Key Findings:

Critical Recommendations Ignored: The first tranche of reforms does not address 49 critical recommendations from the Flood Inquiry, leaving key consumer protections unaddressed.
Lack of Transparency and Reform: The ICA’s response demonstrates a reluctance to embrace meaningful change, opting instead for superficial reforms that fail to address well-documented issues.
Systemic Misconduct: Expert reports are routinely manipulated to minimise claim payouts, leaving consumers at a significant disadvantage.\

ACIL Chairperson Tyrone Shandiman said, “The industry response is yet another predictable and concerning failure to address systemic issues in the insurance industry. Opposition Leader Peter Dutton threatened to 'intervene' in the market by breaking up big insurers—clear evidence that policymakers are fed up with the industry's failures. Consumers deserve stronger protections, and if the industry won’t act, we will. ACIL is prepared to take this fight to the court of public opinion, leveraging media, political engagement, and legal avenues. We are also reviewing a revelatory letter from a veteran industry insider that could prompt further action—potentially making the industry very uncomfortable. If the industry doubts our capabilities, they need only look at our impact on the strata management sector. Watch this space!”

The report outlines actionable recommendations for the ICA, ASIC, and elected representatives, including stronger regulatory oversight, increased transparency, and proactive measures to prevent future abuses. It also calls on ASIC to withhold sign-off on the revised Code of Practice until meaningful reforms are implemented.

Call to Action

ACIL is urging regulators, lawmakers, and industry leaders to take immediate steps to address the issues raised in the report. The organisation also invites industry insiders to come forward with information, whether anonymously or confidentially, to help create a fairer and more transparent insurance system.

Join the Fight for Reform

ACIL calls on industry insiders, whistleblowers, and concerned Australians to stand with us in pushing for a fairer, more accountable insurance system. If you have information to share, ACIL encourages you to reach out anonymously or confidentially.

ACIL Supports Dutton’s Tough Stance on Insurers, Calls for Urgent Reform

The Australian Consumers Insurance Lobby (ACIL) has backed Opposition Leader Peter Dutton’s strong posturing against the insurance industry, calling it a necessary step in holding insurers accountable for skyrocketing premiums, unfair practices, and their failure to implement real affordability solutions.

ACIL has written to Mr. Dutton to commend his position on breaking up the insurance sector, an issue that has struck a chord with frustrated consumers across the country. The insurance industry’s response to these remarks—one of panic and pushback—highlights just how resistant it is to scrutiny and reform.

Click the below link to view ACIL's letter to Mr Dutton:

"Peter Dutton’s comments have caused a major stir within the insurance industry, which is exactly what’s needed to drive change," said Tyrone Shandiman, Chairperson of ACIL. "Insurers have treated both policymakers and consumers with contempt for years, putting profit ahead of fairness, resisting meaningful reform, and failing to take appropriate action to improve affordability."

ACIL’s letter to Mr. Dutton outlines key reforms needed to fix the industry, including:

Examining structural reforms, including breaking up the insurance industry, alongside key recommendations from the recent Government Inquiry into the Impact of Climate Risk on Insurance Premiums and Availability.
Putting the insurance industry on notice—clean up their act, or a Royal Commission will be on the table under a Coalition government.
Stronger regulation of the Code of Practice, transferring the three year review process to ASIC.
Independent consumer advocacy in claims and expert reports, introducing public loss adjusters and stricter governance to eliminate conflicts of interest.

"Consumers are fed up. The insurance industry has ignored multiple inquiries, obstructed government interventions like the Cyclone Reinsurance Pool, and lobbied against reforms that would protect policyholders," Shandiman said. " These comments highlight the urgent need to hold insurers accountable and we strongly support a tough stance against the industry’s failures."

For years, insurers have dictated the terms of the market with little oversight, using complex pricing models, reducing coverage, and making it increasingly difficult for consumers to get fair outcomes. Despite multiple government inquiries and consumer advocacy efforts, the industry has failed to take meaningful steps to address affordability and transparency. It is clear that without strong intervention, insurers will continue to prioritise their bottom line over the needs of everyday Australians. ACIL has formally requested a meeting to discuss these issues further and explore solutions to restore fairness and accountability in the insurance market.

"The industry’s dominance and arrogance have gone unchecked for too long. If insurers want to avoid further scrutiny, they need to start putting consumers first. Otherwise, the government must step in and force them to act," Shandiman said.

ACIL at the Cyclone Inquiry: Fighting for Fairer Insurance in Northern Australia

On Friday 7th February, Chairperson Tyrone Shandiman had the opportunity to appear before the Joint Select Committee for Northern Australia’s Cyclone Inquiry. Representing consumers, we highlighted the successes of the Cyclone Reinsurance Pool but also called for critical improvements to ensure it delivers its full potential.

Watch the full inquiry here: https://www.youtube.com/watch?v=7Wrgx_S9kqs

ACIL appears at the 1:11 mark.

Here’s the opening statement delivered by ACIL Chairperson Tyrone Shandiman at the inquiry:

Thank you for the opportunity to appear before the committee today on behalf of the Australian Consumers Insurance Lobby (ACIL). It is a privilege to represent an organisation that has been at the forefront of advocating for fairer insurance outcomes for consumers, particularly in Northern Australia.

While at times our stance may have been perceived as critical, our advocacy has always been driven by one objective—ensuring that the pool delivers the best possible outcomes for consumers.

It is encouraging to see the pool, now over two and a half years since its inception, delivering meaningful result. We have seen large strata buildings, previously reliant on the insurer of last resort, Lloyd’s of London, achieve significant premium reductions. For example, Whitsunday Waters Resort, which was paying $334,000 in premiums, has seen costs drop to $87,000—a 73% saving. These are real, tangible benefits that make a difference to homeowners and communities.

ACIL firmly believes that the Cyclone Reinsurance Pool is the right mechanism to generate the savings consumers need. The framework is sound, but with some targeted refinements, the pool could deliver even greater benefits. That is why we are here today—to advocate for critical improvements, including:

Fairness in modelling, ensuring it accounts for both historical data and future climate change projections.
Using surpluses for mitigation, with a call for this committee, ARPC, or Treasury to commission an actuarial report quantifying the cost-benefit of mitigation measures to support informed decision-making.
Expanding eligibility criteria to allow more consumers to access the pool’s benefits.
Addressing gaps in coverage, particularly around flood events
Greater transparency in rate setting, so consumers understand how premiums are determined.

I hope to expand on these issues further during today’s discussions.

I also want to address the role of insurers in this issue—because consumers have been let down time and time again. The industry’s conduct has been frustrating, and at times, outright obstructive:

In 2015, when the Northern Australia Insurance Premiums Taskforce was created, the industry claimed there was no market failure and that a reinsurance pool would be unworkable. How ironic it is now to see those very arguments fall apart with time.
The industry has made misleading claims—such as the assertion that including marine insurance in the pool would only have a 5% impact on consumers, while marinas in your electorates are paying three to four times normal premiums with cyclone excesses of $500,000.
Delays in insurer participation meant that consumers did not see the benefits of the pool as quickly as they should have.
Even after joining the pool, insurers continue refuse to insure new business in certain sectors such as strata. Allianz and Chubb, for example, still refuse to underwrite new strata business, while the industry justifies this by essentially saying, "they might have to pay a claim"—which, of course, is the entire purpose of why they are in business.

Beyond the Cyclone Reinsurance Pool, the industry continues to fall short on consumer protections, with current proposed changes to the three year General Insurance Code of Practice failing to address systemic issues exposed in government inquiries and industry reports. The response so far can best be described as superficial changes and window dressing.

This behaviour only reinforces the reality that the insurance industry cannot be trusted to regulate itself or put consumers first. Their submissions are driven by profit motives—not by the needs of policyholders.

This is why ACIL was formed—because consumers needed a voice in an industry that consistently prioritises profits over fairness. We urge you, as elected representatives, to see past the industry’s rhetoric and act decisively. Consumers are relying on you to ensure that the insurance market—an essential service—meets their needs. We have faith that you will rise to this challenge, because if the past decade has taught us anything, it’s that the industry will not fix these problems on its own.

Thank you, and I look forward to your questions.