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:
| AFCA Observes Significant Increase in General Insurance Complaints 01 Feb 2026: Paige Estritori The Australian Financial Complaints Authority (AFCA) has reported a 17% increase in general insurance complaints for the year ending June 30, 2025, totalling 34,231 cases. This uptick is primarily attributed to issues surrounding add-on covers and delays in motor vehicle insurance claims. - read more |
| APRA's Findings: Stability in PI Claims and Decreasing Premiums 01 Feb 2026: Paige Estritori The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database, providing valuable insights into the professional indemnity (PI) insurance sector for the 2022 underwriting year. The data indicates that PI claims payments for non-facility business remained relatively stable at $1.111 billion, a slight increase from $1.109 billion in the previous year. - read more |
| Upcover's New Insurance Solutions for Australian Nurses 01 Feb 2026: Paige Estritori Sydney-based insurtech company Upcover has unveiled a new professional indemnity and public liability insurance product tailored specifically for nurses across Australia. This initiative aims to provide comprehensive coverage that meets the unique needs of nursing professionals, including nurse practitioners, in-patient nurses, doulas, and nursing students. - read more |
| Rising Strata Insurance Costs in the Northern Territory 01 Feb 2026: Paige Estritori Homeowners in the Northern Territory are experiencing significant increases in strata insurance premiums, despite the federal government's cyclone reinsurance pool, established in 2022 to mitigate such costs. This development raises concerns about the effectiveness of the pool and the broader implications for property owners in cyclone-prone regions. - read more |
| Understanding Income Replacement Benefits: A Complete Guide for Australians Income replacement benefits are designed to provide financial support when you're unable to earn a salary due to illness or injury. They act as a safety net, ensuring you can maintain your lifestyle and meet ongoing expenses during unexpected interruptions. - read more
|
| Smart Strategies to Lower Your Health Insurance Premiums In today's rapidly changing health insurance landscape in Australia, keeping track of costs and coverage can be daunting. Many Australians find themselves grappling with high premiums that seem to increase year after year. - read more
|
| Income Insurance: The Safety Net for Your Financial Goals in Australia Financial security is pivotal for anyone striving to meet their life goals, be it owning a home, educating children, or ensuring a comfortable retirement. In Australia, where uncertainties can disrupt our best laid-out financial plans, having a safety net in place is essential. Income insurance offers just that—protection against the unforeseen events that could impact your income earning abilities. - read more
|
| Understanding Life Insurance Needs: A Guide for Australian Families Life insurance is a financial product designed to provide peace of mind by offering a safety net for your loved ones in the event of your passing. The primary purpose of life insurance is to ensure that your family is financially protected, allowing them to maintain their standard of living even without your income. - read more
|
An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.