Insurance Council Delayed Revised Industry Code
The Insurance Council of Australia has postponed filing its updated General Insurance Code of Practice with ASIC.
Updated on Oct. 13, 2026 in Insurance
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The Insurance Council of Australia has delayed the lodgement of its revised General Insurance Code of Practice due to the complexity of feedback received. The new draft proposes stricter protections for customers, including automatic claim acceptance after 12 months for home and motor insurance.
Why it matters
The delay allows the council more time to address concerns raised in the 28 submissions received during the public consultation phase. The proposed code aims to improve standards for retail insurance products, including new frameworks for vulnerable customers and family violence protections.
The industry managed 5.7 million lodged claims across 41.6 million policies during the 2024-2025 period. Future contractual terms under the code are not expected to take effect before 2028.
The players
Insurance Council of Australia
This is the representative body for the general insurance industry in Australia that develops standards and codes for its members.
ASIC
The Australian Securities and Investments Commission is the government body responsible for regulating financial services and consumer protections in the country.
The details
The draft code mandates that insurers incorporate compliance terms directly into retail insurance contracts, such as building and pet coverage. Key features include an Extra Care framework and specific clauses addressing financial abuse within the context of family violence.
Timeline
5.7 million claims were lodged across 41.6 million policies during the 2024-2025 period.
Consultation on the draft code opened on 24 June 2026.
The deadline for public submissions on the draft closed on 21 July 2026.
A revised schedule for lodgement with ASIC is set for October 2026.
The earliest effective date for the new contractual terms is projected for 2028.
Market Dynamics
The updates reflect a broader shift in the Australian insurance sector toward enhanced consumer protections and stricter regulatory compliance. This effort aligns the industry with evolving requirements for handling vulnerable customers and complex claim scenarios.
Consumers should be aware that the proposed automatic claim acceptance rules may eventually simplify the resolution of long-standing home and motor insurance disputes. While the code is not yet in effect, its implementation will eventually require insurers to modify their standard retail policy terms.
The takeaway
The proposed code highlights a significant effort to standardise consumer protections across the Australian insurance market. Policyholders should monitor for future updates as insurers adjust their contracts to align with these new, more rigorous compliance requirements.
Further reading
For broader context on current industry standards, explore the Insurance section.
Source note: This article includes information reported by Insurance Business.
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