The Insurance Council of Australia has submitted its redrafted General Insurance Code of Practice (new Code) to ASIC. The new Code would make applicable Code commitments contractually enforceable, strengthen customer support and change how insurers oversee the businesses acting for them. For insurers, underwriting agencies, insurance claims managers, service suppliers and distributors, preparation starts with understanding which obligations apply to each product, customer and role.

1 The development and its current status
1.1 Approval and commencement remain ahead
This article compares the new 22 October 2026 Code with the current Code. ASIC approval is being sought, the commencement date remains blank, and the ICA anticipates a transition period. The current Code continues to apply in the meantime.

1.2 What consideration for ASIC approval means
ASIC considers approval under section 1101A of the Corporations Act 2001 and Regulatory Guide 183. ASIC tests consistency with relevant Commonwealth law, enforce ability, independent monitoring and public reporting, accurate subscriber information, consumer benefits, consultation and administrative arrangements. It also examines supporting documents, including the CGC’s charter and enforcement arrangements. Approval is made by legislative instrument, with a future effective date allowing implementation.

2 Industry Principles
The Industry Principles are a guide only and do not form part of the Code or are contractually enforceable.

Reframed conduct expectations: Principles (a)–(c) and (g)–(i) emphasis customer relationships, efficient, honest and fair service, product value and learning from complaints. Several themes continue from the current principles, but the current standalone obligation to be honest, efficient, fair, transparent and timely in paragraph 21 is not reproduced as an operative paragraph.
New technology and disaster commitments: Principle (e) addresses responsible use of technology. It appears to be an opportunity missed not to include ‘ethical use of AI requirements’ as a contractually enforceable term of the new Code. Principle (d) addresses disaster resources and scaling the response, and Principle (f) expressly commits to Extra Care for customers experiencing Vulnerability. These themes should inform product governance, claims operations and technology decisions.
A clear enforce ability boundary: the Principles are guidance only and form no part of the Code. This does not remove the existing statutory duty of relevant AFS licensees under Corporations Act section 912A(1)(a) to provide licensed financial services efficiently, honestly and fairly.

3 Section 1 Code overview
New contractual rights: paragraphs 21–24 incorporate applicable paragraphs in Sections 1–9 into the PDS/policy wording. Paragraph 23 qualifies those rights: other policy terms prevail on inconsistency, and stated liability exclusions cover matters including certain events, losses and agreed timeframes. Section 10 and the Industry Principles are outside the contractual promise; paragraph 26 also limits contractual enforcement by third parties.
Changed wholesale coverage: paragraph 4 applies Investigations, complaints, vulnerability, enforcement and representatives (the latter only for Employees and Distributors), to defined Wholesale Insurance. However, the new wholesale definition narrows eligible products to listed small business covers and excludes, for example, public liability, professional indemnity and industrial special risks. The Small Business definition uses fewer than 100 employees for complaints, with a related-group exclusion; otherwise it retains fewer than 100 for manufacturing and fewer than 20 for other businesses. These are Code tests, not a replacement for statutory client classification.
Clearer customer authority and access processes: paragraphs 8–14 introduce detailed nominee authorisation (including claimant intermediaries), withdrawal and flexible identity verification requirements. A sufficient authorisation form cannot be rejected simply because it is not the insurer’s own form. Paragraphs 27–30 reorganise information access, generally allowing 20 Business Days to provide information relied on, with a 10 Business Day rule for specified adverse claim information under paragraph 86.

Paragraphs 19–20 preserve the separate operation of legislation and regulatory requirements. An enforceable contractual Code term is not automatically a civil penalty provision under financial services law. Businesses need to assess Code, contractual and statutory consequences separately.

4 Section 2 Buying insurance
Enhanced application and renewal controls: paragraphs 36–39 specify relevant information across new business, changes and renewals, prompt correction of mistakes, and reasons and complaint information where cover is unavailable. Paragraph 39 adds an express annual renewal notice at least 14 Calendar Days before expiry and a further electronic reminder where possible, if contact details are held and renewal has not occurred. Paragraph 41 adds checking the excess to the existing automatic renewal reminders.
Broader premium and discount information: paragraph 42 requires premium support information on websites and payment reminders, except final cancellation notices. Paragraph 43 retains annual home and eligible motor premium comparisons but removes the current Code restriction to products bought directly from the insurer. The section permits delivery through the broker where a policy was bought through one. Paragraph 44 extends discount explanations to Multi-Policy Discounts.
More specific home building information: paragraph 45 requires insurance calculator review at least annually, replacing the current periodic review standard. Paragraph 46 adds website information to be provided about maintenance, wear and tear, resilience, debris removal and professional fees. Paragraphs 45–46 expressly exclude strata policies. These changes sit alongside the continuing product development and distribution website commitment in paragraph 35.

The design and distribution obligations in Corporations Act Part 7.8A continue separately, where applicable; ASIC RG 274 explains their application.

5 Section 3 Cancelling an insurance policy
New express cancellation explanations: paragraph 47 requires written reasons for insurer cancellation, unless prohibited by law, and information about complaints. It does not apply when the customer cancels. This makes the Code expectation more explicit than current Part 7.
Changed refund trigger: paragraphs 48–49 cover money owed following cancellation, with payment within 15 Business Days of the cancellation transaction date, or validation of payment details where needed. Different broker arrangements remain recognised.
Enhanced instalment notices: paragraphs 50–51 retain the two-notice structure and at least 14 Calendar Days’ advance warning. They add the intended cancellation date, a way to discuss circumstances, and express recognition that cancellation will be at least one month after an instalment remains unpaid. The Code definition of Instalment Policy remains relevant: seven or more instalments a year.

Insurer cancellation must still satisfy the Insurance Contracts Act, including sections 59, 60 and 62 where applicable. Following a Code notice process does not itself create a statutory right to cancel.

6 Section 4 Making a claim
6.1 Claims communication and decisions
New protection where an excess is unpaid: paragraph 54 prevents declining a claim solely because the excess has not been paid, although payment may be required before finalisation. Paragraphs 56–57 retain urgent financial need assistance and the five Business Day advance payment timeframe, with a new payment-detail validation qualification.
Enhanced communication, with changed flexibility: paragraphs 58–63 retain the 10 Business Day initial steps, 20 Business Day updates and 10 Business Day routine enquiry response. Paragraphs 62–63 allow the insurer to proceed on a proposed reasonable alternative timeframe while a disagreement remains, after explaining the reasons and complaints process. Paragraph 76 retains four months as the decision benchmark but permits departure with written reasons and complaint information.
New primary contact provisions: paragraphs 64–67 cover home building claims excluding strata, and other claims where Extra Care is identified, if the claim requires a primary contact. This is conditional rather than a promise of one named person for every claim. A refusal following a request must be explained, with complaint information.
New automatic acceptance mechanism: paragraphs 78–81 apply after 12 months to defined Property Claims, up to policy coverage and limits, unless Delay Factors apply. This covers home building and contents excluding strata, and eligible personal motor claims excluding fleets and businesses or other organisations. Delay Factors include investigations, certain external delays, agreed alternative timeframes and relevant complaints or legal proceedings. Paragraph 81 contains the test for applying them, including the four-month delay consideration and separate complaints and legal-process limbs. Automatic acceptance concerns coverage, not completion of repairs or agreement on the final payment amount.
New escalation controls: paragraphs 79–80 require senior review of an undecided Property Claim at least three months before its automatic acceptance date, completed within 20 Business Days, followed by specified written information if no decision is made. Paragraphs 82–83 introduce senior review after 12 months for other claims, also within 20 Business Days. Neither process replaces ongoing obligations to handle claims efficiently, honestly and fairly (refer ASIC INFO 253).

6.2 Experts and claim fulfilment
Stronger expert report requirements: paragraphs 70–75 extend appointment information, specify reports within 60 Business Days rather than the current 12 weeks, require compliance with the ICA’s Use of Expert Reports Industry Standard and require monitoring and action. Customer-provided expert reports must be considered. Paragraph 85(b) requires automatic provision of external expert reports relied on to decline or partly decline a claim; the current Code generally gives a right to request reports.
New temporary accommodation standards: paragraph 90 requires information about available support, suitability where possible, start and end dates, and changes. For accommodation continuing beyond six months, contact is required at least 14 Calendar Days before it ends. This does not promise accommodation beyond policy limits. Paragraphs 87–89 substantially retain repair quality responsibility, rectification support and scope of works explanations.
Expanded cash settlement safeguards: paragraphs 92–94 add suitability processes where a scope of works is available, risk explanations, additional benefit information and sufficient available scope detail for comparable quotes. Where the insurer is not also offering repair or rebuild, paragraph 94(a) bases the offer on the reasonably calculated cost to the customer at the calculation date. Paragraphs 95–96 provide a conditional 20 Business Day change-of-choice window and 40 Business Days to return money. Paragraph 97 provides a conditional amount review within 12 months, without guaranteeing an increase. The home building cash settlement provisions have express scope limits, including the strata exclusion stated before paragraph 92.
More specific catastrophe controls: paragraph 99 expressly requires catastrophe plans for claims and complaints. Paragraph 100 retains a 12-month review opportunity for defined Property Claims finalised within one month of a catastrophe and requires written notification of the right. Paragraph 91 also retains total loss proof protections, with revised wording.

Claims handling and settling remains a regulated financial service under Corporations Act section 766G where applicable. Cash Settlement Fact Sheet requirements under sections 948C–948F must be checked separately; Code settlement information does not replace the statutory fact sheet where required. ASIC INFO 253 explains the claims licensing and conduct framework.

7 Section 5 Standards for Investigations
Reorganised standards with a revised scope: paragraphs 101–115 consolidate the current Part 15 protections, clarify when a formal Investigation begins, and add more explicit appointment and conduct requirements. Section 1 paragraph 4 applies these standards to defined Wholesale Insurance; wholesale investigation coverage already exists, but the proposed definition limits the products and businesses covered. Paragraphs 104–106 address relevant enquiries, pressure and intimidation, defined scope and training before working with someone who may require Extra Care.
Changed interview boundaries: paragraphs 116–126 retain consent, support, breaks, recordings and safeguards for children. Paragraph 117 limits in-person interviews to those reasonably necessary. Paragraph 123(a) allows an interview beyond 90 minutes if that is the interviewee’s preference; current paragraph 214 states a 90-minute maximum. The four-hour approval control remains.
Retained surveillance safeguards with revised review controls: paragraphs 127–135 retain restrictions on surveillance, a four-month investigation review and quality assurance. The review limit becomes 20 Business Days rather than the current 30 Calendar Days. Paragraph 135 keeps review of non-genuine claim indicators but omits the current paragraph 195 express annual minimum. Businesses should document an appropriate review frequency rather than assume that control is unnecessary.

8 Section 6 Complaints
More direct connection to RG 271: paragraph 136(b) expressly requires compliance with its enforceable provisions. Several current detailed Code requirements are replaced by this reference. The absence of a repeated Code paragraph does not remove an applicable RG 271 requirement, including relevant acknowledgement and written response standards.
Broader customer coverage with familiar controls: paragraph 4 and the section introduction extend the framework to defined Wholesale Insurance and specified uninsured people seeking recovery, subject to exclusions for commercial claims actors. Paragraphs 138–142 retain a primary contact, independent handling, relevant information, 10 Business Day progress updates and the 30 Calendar Day escalation point. Where unresolved at that point, written reasons and AFCA information are required before the deadline, followed by monthly updates.
Continuing accountability for delegated complaints: paragraph 143 requires authorised parties to notify the insurer within two Business Days, handle complaints under the section and monitor compliance. Their breach remains the insurer’s breach. Delegated arrangements need to support both the insurer’s notification timetable and the customer’s applicable IDR rights.

9 Section 7 Taking Extra Care with customers experiencing Vulnerability
9.1 Identifying and responding to support needs
A new circumstance-based definition: the definition accompanying paragraphs 144–148 focuses on circumstances limiting access to or use of insurance services, financial decisions or claims. It expands on the current list of vulnerability factors and recognises changing needs. The section expressly covers individuals accessing services relating to Retail Insurance or defined Wholesale Insurance; it does not treat every business entity as an individual.
A more explicit promise of agreed support: paragraphs 146–148 require agreed Extra Care when vulnerability is recognised or disclosed, processes to recognise support needs, and systems, processes and training developed in accordance with principles from the ICA’s Industry Guide on Vulnerability. The Guide itself remains non-contractual guidance under the proposed framework.
New recording and communication controls: paragraphs 150–154 require recording agreed support, asking permission to retain vulnerability details for future dealings, and accommodating preferred communication channels subject to stated limits. Written Code communications may be varied where safety is at risk. Interpreter use, or reasons one could not be arranged, must be recorded.
More specific training and support: paragraphs 149 and 155–156 expand published support information and role-appropriate training, including trauma-informed practice, culturally appropriate support for First Nations customers and recognition of financial hardship. The practical task is to make agreed support visible to the people delivering the service while controlling access to sensitive information.

9.2 Family violence and mental health
Expanded family and domestic violence protections: paragraphs 157–159 add express controls against weaponising insurance products and services, website quick exits, supplier escalation of concerns and steps to protect location and personal information. Customers do not need an intervention order to access the policy protections. This goes beyond the current requirement to publish a family violence policy.
More detailed mental health commitments: paragraphs 160–163 address evidence for pre-existing condition exclusions, prohibit denial for accurately disclosed conditions unrelated to the claim, require records supporting decisions and provide information access rights. These develop the current mental health commitments into more specific operational requirements alongside applicable anti-discrimination law.

For Privacy Act entities, collecting and sharing vulnerability information must also satisfy applicable Australian Privacy Principles, including the rules for sensitive information. Code permission to record a support need should be designed into a lawful collection, access and security process.

10 Section 8 Financial Hardship
Clearer access, with an important boundary: paragraphs 164–168 strengthen website information, applications and communication. The definition includes difficulty meeting current or upcoming obligations. The section is for specified individuals, not a general promise of support to all companies, and expressly excludes support with paying policy premiums. Premium support information is dealt with separately in paragraph 42.
Existing recovery safeguards remain: paragraphs 169–176 retain recovery holds and the 10 Business Day decision period after receipt of necessary information, while expressing the information process through a 20 Business Day window or an agreed alternative. Paragraph 177 expands examples of support, including deducting an excess from a payment and waiving cancellation fees. Relief depends on entitlement and circumstances; it is not automatic debt forgiveness.
New tenant recovery protection: paragraph 186 prohibits recovery from an uninsured residential tenant for accidental or unintentional damage to that property. Paragraphs 183–185 retain debt collection standards and require more specific information demonstrating that a recovery amount is fair and reasonable. This affects recovery instructions, debt collection scripts and controls.

11 Section 9 Standards for our representatives
11.1 Appointments contracts and training
A clearer representative framework: paragraphs 187–200 bring together standards currently split across employee, distributor and supplier provisions. The definition of Claims Fulfilment Provider expressly captures appointed panel repair, rebuild and restoration providers. The defined Insurance Claims Manager includes approved subcontractors authorised to make claim decisions. Insurers should map actual functions to the definitions before assigning obligations.
Enhanced employee training: paragraph 187 expressly covers complaints, Extra Care, hardship, family violence and First Nations cultural awareness, as relevant to the role. Competence and acting within expertise continue. These expectations should be integrated with applicable AFS licence competence and representative training obligations.
Expanded appointment and subcontracting controls: paragraphs 189–192 require role disclosure, suitability processes, relevant licensing and competence. Service Suppliers and Claims Fulfilment Providers must obtain approval before appointing subcontractors, with required licences checked. Paragraph 193 requires contracts entered after the stated date, to require relevant Code standards.
Role-based training with recognition of existing learning: paragraphs 194–196 extend relevant Code, product, complaints, vulnerability and hardship training across the defined representative groups. Necessary training already received can be recognised regardless of provider. Paragraphs 188 and 195 replace express seven-year Code retention requirements with retention in accordance with relevant law; applicable legal and contractual retention rules still need to be identified.

11.2 Monitoring reporting and remedies
Broader monitoring and changed breach notification: paragraphs 197–198 require monitoring across the representative groups and notification of breaches promptly on identification. Current paragraphs 27 and 37 specify two Business Days for distributor and service supplier Code breaches. That fixed breach reporting period changes, while paragraph 143 retains two Business Days for delegated complaint notification.
Continuing insurer accountability: paragraph 25 expressly includes Claims Fulfilment Providers in insurer accountability for representatives’ Code breaches. Paragraphs 199–200 retain customer remedies for specified employee or distributor misconduct and action on inadequate supplier performance, extending the latter expressly to Claims Fulfilment Providers. A binder holder or claims manager should expect its insurer to require evidence that delegated obligations are being met.

12 Section 10 Enforcement sanctions compliance and reviewing the Code
Revised oversight and governance: paragraphs 201–209 retain independent CGC oversight and require monitoring systems, an annual compliance report and reporting to the board or executive management. Paragraph 204 specifies de-identified publication of serious and systemic breach decisions. Section 10 itself is expressly outside the insurance contract.
Changed significance and reporting tests: paragraph 211 requires reporting Significant Breaches within 30 Calendar Days, replacing the current 10 Business Days. The definition now expressly requires holistic consideration of all factors and significance in the context of overall Code compliance. This CGC assessment is separate from ASIC reportable situations obligations under the Corporations Act.
Higher potential payment with revised sanction limits: paragraphs 212–217 retain sanctions and raise the community benefit payment cap from $100,000 to $200,000, with annual CPI indexation from a date still to be inserted. Paragraph 214 excludes CGC sanctions for a Significant Breach being, or already, investigated or subject to regulatory or enforcement inquiry by another regulator or court. The current express power to require compensation for direct loss under paragraph 174(a) is not reproduced. Customer contractual and statutory remedies require separate consideration.

13 Business implications and practical preparation
13.1 Systems must recognise the right obligation
My assessment is that insurers and their partners will need more than a document update. A retail or wholesale flag alone will not identify every applicable obligation. Product type, employee thresholds, the person seeking assistance, claim type and the representative’s role all matter. For example, defined wholesale cover can attract investigation and Extra Care standards while the retail claims section does not apply.

For insurers, underwriting agencies and claims managers, this points to changes in policy administration, claims workflows and data exchange. Systems need to distinguish a coverage Decision from settlement and repair completion; track review dates and the reasons for delays; record agreed Extra Care and safe contact preferences; and transfer complaint and breach information to the right insurer. Supplier portals and delegated authority reporting need to support the same obligations.

13.2 Start with a proportionate implementation plan
I suggest starting with a product and role applicability map, then comparing the applicable draft obligations with current controls. Assign an owner to each gap and identify dependencies on insurer decisions, contracts, technology and training. Test practical scenarios, including a wholesale small business customer requiring Extra Care, a delayed Property Claim and a vulnerable customer considering a cash settlement.

Keep the Code obligations within the existing AFSL and operational compliance framework, with separate assessment of statutory and Code reporting triggers. Finalise commencement, policy wording and transition settings against the approved Code rather than assuming the October proposal is settled.

I can assist insurers, underwriting agencies, claims managers and service suppliers to assess these gaps and integrate approved Code obligations into their manuals, delegated arrangements, training and ongoing compliance monitoring. The aim is for the commitments to be reflected in the service customers receive.

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