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
Source: Paige Estritori

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

Share this news item:

Insurance News

Clear

WA Transport Sector Pushes for Enhanced Truck Licensing Standards

05 Mar 2026: Paige Estritori

Western Australia's transport industry is urging the state government to implement more stringent heavy vehicle licensing requirements, aiming to bolster road safety and address concerns over inexperienced drivers operating large trucks. This initiative follows South Australia's recent reforms, which introduced tougher conditions for obtaining multi-combination (MC) licenses. - read more

Heightened Road Risks as Holiday Travel Meets Freight Surge

05 Mar 2026: Paige Estritori

As the Australian summer holidays approach, a significant increase in road traffic is anticipated, coinciding with peak freight activity. This convergence raises concerns about heightened road risks, prompting insurers and transport specialists to issue warnings to motorists. - read more

Federal Court Denies Truck Driver's Insurance Appeal

05 Mar 2026: Paige Estritori

In a recent legal development, the Federal Court of Australia dismissed an appeal by Bradley Henschke, a logging truck driver, concerning his insurance claim against the Australian Retirement Trust. The court's decision, delivered on February 12, 2026, underscores the critical importance of active insurance coverage for workers in high-risk occupations. - read more

Navigating Rising Premiums and Cybersecurity Threats in Australia's Insurance Sector

05 Mar 2026: Paige Estritori

In 2026, Australia's insurance industry is grappling with significant challenges, notably escalating premiums and increasing cybersecurity threats. These issues have prompted insurers to reassess their strategies to maintain profitability and customer trust. - read more

Bridging the Risk Preparedness Gap: Australian Insurers and Emerging Threats

05 Mar 2026: Paige Estritori

Recent findings from PwC's Insurance Banana Skins Survey reveal that Australian insurers are falling behind their global counterparts in risk preparedness, particularly concerning emerging threats such as artificial intelligence (AI) and cyber risks. The survey indicates that local insurers scored 6.6% lower on the Preparedness Index compared to global peers, marking a four-year low. - read more

Click for more Insurance News