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

NRMA Flags Crude Oil Supply as Australia's Pressing Concern

26 Apr 2026: Paige Estritori

The National Roads and Motorists' Association (NRMA) has raised concerns about Australia's crude oil supply, identifying it as a significant challenge amid ongoing Middle East conflicts. This situation has potential implications for transport costs and motor insurance exposures in the coming months. - read more

AustralianSuper Announces Substantial Insurance Premium Increases

25 Apr 2026: Paige Estritori

AustralianSuper, the nation's largest superannuation fund, has informed its members of impending increases in insurance premiums, set to take effect from May 30, 2026. This development is particularly noteworthy for those holding life, total and permanent disability (TPD), and income protection insurance through their superannuation accounts. - read more

Insurers Push to Extend Rebate for Low-Income Seniors

25 Apr 2026: Paige Estritori

Health insurers are calling on the Australian government to exempt low-income seniors, including those on the Age Pension, from the proposed changes to the Private Health Insurance Rebate. The concern is that requiring these individuals to pay hundreds of dollars more each year to maintain their private health insurance could lead some to downgrade their coverage or abandon it altogether. - read more

Marine Insurers Maintain Support Amid Middle East Conflicts

25 Apr 2026: Paige Estritori

The International Union of Marine Insurance (IUMI) has recently highlighted the resilience of marine insurers in the face of escalating conflicts in the Middle East. Despite the challenging geopolitical landscape, insurers continue to provide essential coverage for cargo, hull, liability, and offshore energy sectors, ensuring that global trade flows remain protected. - read more

Rising Insurance Premiums and Declining Profits in Australia

25 Apr 2026: Paige Estritori

Recent findings from KPMG's annual review of the general insurance industry reveal a concerning trend for Australian businesses: insurance premiums are on the rise, while industry profits are experiencing a downturn. This development is largely attributed to the escalating costs associated with natural disasters. - read more

Click for more Insurance News