Call for Stricter Timelines on Insurance Claims and Renewals

3

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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

NSW Strata Commission Ban: A Catalyst for Industry Reform

07 Feb 2026: Paige Estritori

The New South Wales (NSW) government's proposal to ban commissions on strata insurance has ignited a contentious debate between consumer advocacy groups and industry leaders. This reform aims to eliminate potential conflicts of interest and enhance transparency within the strata management sector. - read more

Queensland Strata Owners Advised to Leverage New Premium Reduction Programs

07 Feb 2026: Paige Estritori

Strata property owners in North and Central Queensland are being encouraged to take advantage of newly introduced federal and state initiatives designed to reduce insurance premiums and enhance cyclone resilience. These programs offer financial incentives for property upgrades that can lead to significant savings on insurance costs. - read more

Australian Insurers Struggle to Keep Pace with Emerging Risks

07 Feb 2026: Paige Estritori

Recent findings from the PwC Insurance Banana Skins Survey reveal that Australian insurers are trailing their global counterparts in risk preparedness. The survey, which gathered insights from 698 insurance executives across 42 territories, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to the global average. This gap is particularly concerning as the industry faces escalating challenges from cyber threats and the rapid advancement of artificial intelligence (AI). - read more

Significant Increases in Australian Home Insurance Premiums

07 Feb 2026: Paige Estritori

Australian homeowners are experiencing substantial increases in home insurance premiums, with the average premium rising by 16% over the past year. Consumer advocacy group Choice reports that some insurers, including Kogan, RAC, and Honey, have raised their rates by more than 30%. These hikes are attributed to various factors, including high supply chain inflation, increased claims costs, and higher reinsurance expenses due to severe weather events. - read more

The Vital Role of Reinsurance in Australia's Insurance Industry

07 Feb 2026: Paige Estritori

Reinsurance serves as a critical component in the Australian insurance landscape, offering capital relief and stabilising returns for insurers amidst escalating natural disaster claims. A recent report by the Actuaries Institute underscores the indispensable role of reinsurance in maintaining the industry's financial health. - read more

Click for more Insurance News