After engagement with key stakeholders, it was determined that the new code should be contractually enforceable, with clear rights and obligations of insurers set out in easy-to-understand language.

The code will be developed using the feedback and recommendations provided through the work of the code review, the Parliamentary Flood Inquiry, and ongoing stakeholder feedback.

The industry will undertake further consultation throughout the development and drafting process with the ICA’s Consumer Advisory Council, regulators, government, and other expert parties.

Public consultation is anticipated to take place in the first quarter of 2026, with the code expected to be lodged with ASIC for approval in mid-2026. The current code, developed in 1993 and amended on multiple occasions since, will remain in place in the interim.

According to the ICA, improving consumer protections and customer experience is a key focus of the industry, and a range of initiatives have already been completed or are underway because of work done since the 2022 floods. This includes:

The ICA and insurers are also progressing work to implement recommendations agreed by industry from the Parliamentary Flood Inquiry. This includes insurers’ in-principle agreement to have internal consumer advocates to support customers with the claims process. Given the diversity of business models across the industry, each insurer will consider how best to implement this role internally.

Andrew Hall, CEO of the ICA, described the development of a new code as a once-in-a-generation opportunity to deliver better outcomes for consumers.

“As an industry, we are committed to maintaining and uplifting consumer protections, making it easier for [consumers] to understand their rights and engage with their insurer,” he said.

“A lot has changed in 30 years and the pace of change is only expected to accelerate moving forward, impacting all aspects of insurance from underwriting through to claims handling.

“Equally, since 1993, governments have enacted a significant amount of new legislation and regulation that now governs the industry across how insurance is designed, sold and used, and these baseline requirements are being enforced by regulators.”

According to Hall, a well-functioning code must balance the need to generate trust in the robustness of the industry’s consumer protection frameworks. It also requires flexibility to provide accessible and affordable products to Australians as pricing pressures grow.

“The new code will do what good industry codes seek to do – commit to standards and specific practices which go over and above legislative and regulatory requirements and, as a result, improve customer outcomes,” he said.