Call for Stricter Timelines on Insurance Claims and Renewals
Call for Stricter Timelines on Insurance Claims and Renewals
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
Share this news item:
| CHU Publishes 2025 State of the Strata Market Report 17 Feb 2026: Paige Estritori CHU, Australia's largest strata insurance underwriting agency, has released its 2025 State of the Strata Market report, providing a comprehensive analysis of key industry statistics, trends, and market forces shaping the strata sector. The report addresses critical areas such as affordability, climate-related risks, regulatory reforms, and emerging challenges. - read more |
| ICA Advocates for Reforms in Victoria's Strata Legislation 17 Feb 2026: Paige Estritori The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, highlighting that poor governance and deferred maintenance are leading to increased insurance premiums for the one in five Victorians residing in strata-titled properties. In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects are costing Australians an estimated $1. - read more |
| CHU Unveils Enhanced Residential Strata Insurance Policy 17 Feb 2026: Paige Estritori CHU, Australia's leading strata insurance underwriting agency, has launched a new residential strata insurance policy designed to better support property owners and strata communities. This initiative reflects CHU's commitment to delivering customer-focused solutions that simplify insurance processes and enhance community resilience. - read more |
| Survey Highlights Alarming Number of Australians Travelling Uninsured 16 Feb 2026: Paige Estritori Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travelers embark on international journeys without any form of travel insurance. This statistic has prompted industry leaders to urge Australians to reconsider the importance of securing adequate coverage before traveling abroad. - read more |
| Estate Planning and Insurance: Safeguarding Your Legacy in Australia Estate planning is a critical process often overlooked, yet it serves as the cornerstone of ensuring that your legacy is protected and seamlessly passed on to your loved ones. It's about securing your financial future and guaranteeing that the assets you've toiled to amass are distributed according to your wishes. In the intricate world of asset protection and family security, being well-informed can make all the difference. - read more
|
| Income Insurance Calculators: A User-Friendly Tool for Adequate Coverage Income insurance, also known as income protection insurance, is a type of policy designed to provide support in the event that you are unable to work due to illness or injury. In today's uncertain economic climate, securing your income is more critical than ever. It acts as a financial safety net, ensuring that you can continue to meet your living expenses without depleting your savings or facing severe financial hardship. - read more
|
| How Much Should You Budget for Insurance in Australia? Welcome to the comprehensive guide on navigating the diverse world of insurance in Australia. Whether you're safeguarding your personal assets or protecting your business interests, insurance plays a pivotal role in financial security. In this introductory section, we'll explore why budgeting for insurance is crucial for Australians, delve into the various types of insurance available, and illustrate how insurance should integrate into your broader financial planning strategy. - read more
|
| Understanding the Role of Life Insurance in Financial Security Life insurance can seem complex at first, but understanding the basics can help demystify this important financial product. At its core, life insurance is a contract between you and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon your passing, in exchange for premium payments. - read more
|
The individual or entity who owns the insurance policy.