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Building Resilience: ICA Aligns Floods Inquiry Plan
Building Resilience: ICA Aligns Floods Inquiry Plan
Released in final form today, the panel's review of the code of practice observes all previous 101 untouched suggestions, in the aftermath of the 2022 floods, discussed in the concurrent parliamentary inquiry. The original source of this evolving development was published in Insurance News.
By acknowledging the interdependent nature of these reports, the ICA decided on a "phased response," providing an adaptive method that prioritizes action on easier-to-implement recommendations while further examining intricate proposals.
The parliamentary floods inquiry led to 86 proposals targeted at reshaping industry practices, which partnered with suggestions affecting regulatory frameworks. These ranged from improvements in product clarity to protective measures for vulnerable clientele. In collaboration with the code review and identifying 41 key areas, the ICA assures a focus on customer benefits without stifling competitive dynamics.
"The Insurance Council is actively reviewing the remainder of the recommendations with a focus on ensuring that the changes are proportionate to the problem being addressed, do not constrain competition, allow flexibility and promote innovation," the council conveyed.
Significant advancements include the creation of standardized policy clauses and enhanced procedures for handling customers identified as vulnerable. A detailed progress update is due alongside the modified Deloitte report on the floods, delayed for a holistic response detailing on code and industry standards.
Redrafting of the insurance code is projected for the upcoming year, integrating widespread consultation before approval by the Australian Securities and Investments Commission. ICA's commitment, as ICA CEO Andrew Hall asserts, is not limited to disaster response but spans systemic customer experience enhancements.
Nonetheless, on-the-ground consumer advocates proceed cautiously, recognizing that while promising, the insurance sector's response must continue to embrace unaddressed core aspects. "Insurers have picked off some low-hanging fruit in the recommendations and we commend them for beginning their journey to implement some changes," remarks Alexandra Kelly, acting CEO at the Financial Rights Legal Centre.
Challenges remain, particularly around significant code recommendations, such as expanding temporary accommodation benefits and embedding enforcement in customer contracts. Another critical opposition is the proposal to uplift community breach payments, where substantial transformation is viewed as necessary.
The ongoing review's independent panel seeks momentum, urging the ICA and associated insurers toward timely implementations across overlapping themes from both the report and the inquiry. As panel chair Helen Rowell states, "The review panel encourages ICA and insurers across the country to act in a timely way on the important steps needed to improve industry practices across the various issues and areas covered in the report."
Awaiting the federal government’s response, all eyes remain on the collective progress in enhancing industry resilience and consumer safeguarding post-2022 floods, as coordinated interactions between governmental bodies, regulators, and industry agents evolve throughout this scrutinized initiative.
Published:Thursday, 19th Dec 2024
Source: Paige Estritori
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A form of life insurance that is a pure protection policy with no cash or maturity value which lasts for a specific length of time, called a term.