The Australian Consumers Insurance Lobby (ACIL) says “self-regulation is failing” and has called on the government to “take over” the General Insurance Code of Practice. The group accused the Insurance Council of Australia (ICA) of a “blatant disregard for independent review recommendations” and government inquiries.
“With insurers cherry-picking recommendations and refusing to adopt key reforms from its own independent reviews and government inquiries, ACIL believes the government must now consider taking control of the Code,” said chair Tyrone Shandiman (main picture), in a media release today.
ACIL’s call for direct government regulation of insurers through the Code follows the ICA’s release of an Industry Action Plan on Monday. The Plan outlined the ICA’s position on remaining recommendations from government inquiries and its response to the current review of the industry’s Code.
Earlier this week, the Code’s independent review panel also criticised the ICA’s Plan. The panel called on the insurer group to take steps to make the Code contractually enforceable, like the Banking Code of Practice.
The group said insurers continue to rely on “biased expert reports and “sidestep” recommendations using cash settlements for claims. ACIL also said with “no clear timeline for completion,” insurers’ Vulnerability Framework leaves vulnerable consumers at risk.
The release said ACIL is urging the ICA to reconsider.
“If insurers refuse to act in the interests of consumers, we will actively lobby for a government takeover of the Code to ensure policyholders receive the fairness and protection they deserve,” said Shandiman.
Insurance Business has reached out to the ICA for a response
