The Australian Consumers Insurance Lobby (ACIL) has today released a groundbreaking report titled "Falling Short: Why the Industries Initial Response Fails to Deliver Meaningful Reform in the Code of Practice." This comprehensive analysis critiques the Insurance Council of Australia's (ICA) initial response to the General Insurance Code of Practice Review, revealing systemic shortcomings that leave Australian consumers vulnerable.
Click the below link to access ACIL's Report
Key Findings:
Critical Recommendations Ignored: The first tranche of reforms does not address 49 critical recommendations from the Flood Inquiry, leaving key consumer protections unaddressed.
Lack of Transparency and Reform: The ICA’s response demonstrates a reluctance to embrace meaningful change, opting instead for superficial reforms that fail to address well-documented issues.
Systemic Misconduct: Expert reports are routinely manipulated to minimise claim payouts, leaving consumers at a significant disadvantage.\
ACIL Chairperson Tyrone Shandiman said, “The industry response is yet another predictable and concerning failure to address systemic issues in the insurance industry. Opposition Leader Peter Dutton threatened to 'intervene' in the market by breaking up big insurers—clear evidence that policymakers are fed up with the industry's failures. Consumers deserve stronger protections, and if the industry won’t act, we will. ACIL is prepared to take this fight to the court of public opinion, leveraging media, political engagement, and legal avenues. We are also reviewing a revelatory letter from a veteran industry insider that could prompt further action—potentially making the industry very uncomfortable. If the industry doubts our capabilities, they need only look at our impact on the strata management sector. Watch this space!”
The report outlines actionable recommendations for the ICA, ASIC, and elected representatives, including stronger regulatory oversight, increased transparency, and proactive measures to prevent future abuses. It also calls on ASIC to withhold sign-off on the revised Code of Practice until meaningful reforms are implemented.
Call to Action
ACIL is urging regulators, lawmakers, and industry leaders to take immediate steps to address the issues raised in the report. The organisation also invites industry insiders to come forward with information, whether anonymously or confidentially, to help create a fairer and more transparent insurance system.
Join the Fight for Reform
ACIL calls on industry insiders, whistleblowers, and concerned Australians to stand with us in pushing for a fairer, more accountable insurance system. If you have information to share, ACIL encourages you to reach out anonymously or confidentially.
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