Call for Stricter Timelines on Insurance Claims and Renewals

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A major focus of the committee's recommendations is the enhancement of protection for small business clients. Currently, remuneration disclosure requirements are predominantly aimed at retail clients; however, the committee argues that small businesses should also be afforded the same level of transparency.

Another key area highlighted by the committee is the need for stricter timelines around claims and renewals. Presently, brokers are expected to “keep clients informed in a timely manner regarding the progress of their claim,” as stated in clause 7.1. However, the committee suggests a more specific commitment of providing updates every 20 business days. Additionally, they advocate for increasing the notification period for policy renewals from the current 14 days before expiry to a minimum of 30 business days in advance.

These proposed time frames are designed to align client expectations with broker obligations, fostering informed decision-making and improving the overall client experience. The committee emphasizes that such measures will enhance trust in brokers and minimize the risk of lapses in coverage.

Breach and complaint identification, along with reporting, are also under scrutiny in the committee's submission. It urges brokers to report all breaches, including those by representatives, and calls for improved training regarding the code. “Named reporting” on breaches is one of the committee's key recommendations, aiming to enhance transparency and promote better compliance practices. This approach allows firms to benchmark their performance against peers, highlighting industry outliers.

To support these initiatives, the committee proposes securing sufficient funding, enabling them to conduct their own independent investigations and reviews, arguing that reliance solely on self-reported data is inadequate for effective compliance monitoring.

The committee mentions potentially extending the code review period from the current three years to five years, contingent upon the code's approval by the corporate regulator. Such changes are intended to provide a more robust framework for oversight in the industry.

Published:Tuesday, 6th May 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Broker Held Accountable for Uncommunicated Policy Exclusions Leading to Claim Denial

10 Apr 2026: Paige Estritori

In a recent decision by the Australian Financial Complaints Authority (AFCA), a broker has been found liable for failing to adequately inform a client about critical exclusions in a truck insurance policy, resulting in the denial of a damage claim. This case underscores the paramount importance of clear communication between brokers and clients, especially concerning policy terms that can significantly impact coverage. - read more

Understanding the Impact of Seasonal Risks on Truck Insurance in Australia

10 Apr 2026: Paige Estritori

Seasonal changes in Australia bring about varying weather patterns and traffic conditions, significantly impacting the trucking industry. These fluctuations not only affect operational efficiency but also have profound implications for insurance coverage and premiums. Understanding these seasonal risks is crucial for truck owners and operators to ensure adequate protection and cost management. - read more

Navigating Insurance Requirements for Food Truck Operators in Australia

10 Apr 2026: Paige Estritori

Operating a food truck in Australia presents unique challenges, particularly when it comes to securing appropriate insurance coverage. Unlike traditional brick-and-mortar establishments, food trucks combine elements of a business, vehicle, and commercial kitchen, necessitating a tailored approach to insurance. - read more

Zurich Australia's New Income Protection for Women's Health

09 Apr 2026: Paige Estritori

Zurich Australia has unveiled a pioneering income protection benefit tailored specifically for women's health conditions, including menopause and endometriosis. This initiative addresses the significant impact these conditions have on women's professional lives and financial stability. - read more

APRA's Renewed Efforts to Reform Income Protection Insurance

09 Apr 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced the resumption of its reforms targeting individual disability income insurance (IDII), commonly known as income protection insurance. This initiative aims to address the financial challenges that have plagued the industry, with insurers reporting losses exceeding $3.4 billion over the past five years. - read more

Click for more Insurance News