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
Share this news item:
| New Alliances for Restoration: RACQ Joins RIA Australasia 24 Dec 2024: Paige Estritori In a significant development for the restoration industry in Australia, RACQ Insurance has become the latest insurer to align with the Restoration Industry Association (RIA) Australasia. This follows closely behind Suncorp's recent membership, highlighting a trend of increased insurer involvement in the sector. - read more |
| Building Resilience: ICA Aligns Floods Inquiry Plan 19 Dec 2024: Paige Estritori The Insurance Council of Australia (ICA) is strategically addressing the recommendations from recent inquiries into flood responses and code of practice in its latest updates. Acknowledging the variety and complexity of the suggestions, ICA supports 78 out of the total recommendations presented, tackling them in a staged and structured manner. - read more |
| Major Acquisitions Shake Up the Australian Life Insurance Sector 18 Dec 2024: Paige Estritori In a significant move estimated at $13 billion, MLC Life Insurance and Resolution Life’s subsidiaries in Australia and New Zealand are set to merge. This development is part of an acquisition involving Nippon Life, a major player in the global insurance industry. - read more |
| Sure Highlights Coverage Gaps in Cyclone Zones 17 Dec 2024: Paige Estritori An alarming gap in insurance coverage has been spotlighted by Queensland underwriting agency, Sure, as it drew attention to underinsurance among cyclone-susceptible areas. Their comparison of coverage across the state reveals stark contrasts that could have dire consequences for residents. - read more |
| Why Income Protection Insurance is Essential for Self-Employed Australians Income protection insurance is a type of coverage designed to provide you with a steady income if you are unable to work due to illness or injury. Unlike other types of insurance, which may focus on lump-sum payments, income protection insurance prioritises regular income replacement to help cover your everyday expenses. - read more
|
| Income Protection: How to Safeguard Your Earnings in Uncertain Times In the landscape of personal financial planning, income protection insurance emerges as a critical safeguard against the unpredictable nature of life's many uncertainties. As we navigate through economic turbulence and job market volatility, the importance of income protection becomes ever more apparent. This type of insurance serves as a financial backstop, designed to provide a stable flow of income when you're unable to work due to sickness or injury. - read more
|
| Life After You: Planning Ahead With Quality Life Insurance for Your Family Life insurance is a fundamental component of a robust financial plan, yet its significance is often underestimated. It serves as a safety net, ensuring that your loved ones are financially secure in the event of your absence. Understanding life insurance is the first step towards safeguarding your family’s future. - read more
|
| The Single Parent’s Guide to Securing Your Child’s Financial Future Single parenting brings with it a mosaic of responsibilities and challenges, not least of which is securing a stable financial future for your child. The rollercoaster of raising a child alone often means that planning for the future can take a back seat to the day-to-day demands of parenting. Unexpected illnesses and injuries can compound these challenges, causing stress to multiply and plans to go awry. - read more
|
A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.