APRA deputy chair Helen Rowell to head insurance review

The two-part review, which kicks off on Tuesday, will analyse the industry’s response to widespread flooding in 2022.

The two-part review, which kicks off on Tuesday, will analyse the industry’s response to widespread flooding in 2022. Picture: Liam Kidston

Australian Prudential Regulatory Authority deputy chair Helen Rowell will head the Insurance Council of Australia’s review of the 2020 General Insurance Code of Practice.

The two-part review, which kicks off on Tuesday, will analyse the industry’s response to widespread flooding in 2022 and ways to improve the code in accordance with ICA terms of reference.

Joining Ms Rowell on the three-person review panel will be consumer expert and lawyer Gerard Brody and industry expert Paul Muir, managing director of Compliance Advocacy Solutions.

The first phase of the review will cover issues such as support for vulnerable customers, governance, the interaction between the code and existing laws, as well as findings and recommendations. The deadline for the phase one report is June 30, 2024.

The second phase will revolve around the floods and responses required when a catastrophe occurs. The deadline for the phase two report is June 30, 2025.

Key recommendations from last month’s Deloitte’s review of the insurance industry’s responses to the 2022 floods will also be considered by the panel.

Deloitte’s review identified major issues and lessons learned from last year’s floods that can help insurers better respond to extreme weather events.

The ICA-commissioned review recommends the definition of an extraordinary catastrophe be reworded in the General Insurance Code of Practice.

The review will also consider the industry’s response to the Covid-19 pandemic.

Across both phases of the review process, panel members will consult with the Code Governance Committee (CGC) and monitoring team, the general insurance industry, the Australian Securities and Investments Commission (ASIC), APRA, and consumer representatives.

ICA chief Andrew Hall said the council and insurers looked forward to working with panel members to alter the code so that it remained relevant and effective in supporting customers.

“Each of the three-person panel brings considerable experience and has been appointed in recognition of the diversity of skills and backgrounds needed to inform an independent review, and I want to thank them in advance for their willingness to undertake this important task,” Mr Hall said.

“I know the panel will conduct a comprehensive and robust review of the code, and that their findings and recommendations will help make the code even more effective in supporting and protecting consumers.”

The General Insurance Code of Practice sets out the standards insurers are required to follow when working with clients including being honest, ethical, fair, and open in customer interactions. It is required to be reviewed as part of a three-year cycle.