The General Insurance Code Governance Committee (CGC) has highlighted its impact on the insurance industry and signals more effective monitoring in the year ahead in its 2023-24 Annual Report.
The report, published today, underscores the CGC’s influential role in driving improvements across the industry, with inquiries, investigations and a sanction playing a major role.
Chair of the CGC, Veronique Ingram, highlighted the tangible outcomes of the CGC’s work.
“Our inquiry into the oversight of external experts revealed critical areas that needed attention, and we are pleased to see some meaningful change in the industry,” Ms. Ingram said.
“We are optimistic that these improvements will lead to better practices from insurers with fairer outcomes for customers.”
The CGC’s monitoring work in 2023-24 included a sanction against Allianz for serious breaches of the Code of Practice.
“Issuing our first sanction was a significant part of our compliance monitoring this year,” Ms Ingram said.
“Our decision to issue the sanction this year, which included a $50,000 community payment, highlights the severity of the breaches and demonstrates our willingness to take firm action in the appropriate circumstances,” Ms Ingram said.
The CGC also played a pivotal role in highlighting areas for improvement through its submission to the parliamentary inquiry into insurers’ responses to the 2022 major floods and subsequent appearance before the inquiry’s committee.
“Our submission to the parliamentary inquiry called out areas where the industry needed to do better, and we are starting to see some positive developments now,” Ms. Ingram added.
In pushing for a stronger Code of Practice, the CGC called for powers to name insurers in its regular reporting as part of its submission to the Code review in 2023-24.
“We are committed to working with all stakeholders to support the transition to a new, strengthened Code that better serves customers,” Ms. Ingram said. “A crucial element of this, aside from the key Code provisions that protect customer interests, is our ability to name insurers in our reporting. This brings important accountability and transparency.”
The report highlights the CGC’s refined enforcement strategy, which has made its monitoring of industry compliance more efficient and effective. It has enhanced its capacity for proactive investigations, enabling it to address emerging risks more swiftly and effectively.
“Our approach to enforcement has evolved, allowing us to be more proactive and responsive to the risks we see in the industry. This is strengthening our oversight and our ability to ensure compliance with the Code,” Ms. Ingram concluded.
The CGC’s 2023-24 Annual Report reflects a year of substantial progress and reaffirms the Committee’s commitment to improving industry standards and protecting customers.
Read the 2023-24 Annual Report.