General insurance committee highlights efforts to improve industry compliance
General insurance committee highlights efforts to improve industry compliance | Insurance Business Australia
Insurance News
General insurance committee highlights efforts to improve industry compliance
Industry forecast shared
Insurance News
By
Roxanne Libatique
The General Insurance Code Governance Committee (CGC) has released its 2022-23 annual report, covering its efforts to improve industry compliance and accountability.
According to the report, CGC’s recent inquiry revealed the high over-turn rate of general insurance claims initially denied on grounds of wear and tear following customer complaints.
“Our work continues to serve as a catalyst for positive change within the industry. We are dedicated to improving overall industry practices and ensuring fair treatment for consumers,” said CGC Chair Veronique Ingram.
Among the issues investigated, delays in reporting significant breaches caught CGC’s attention the most.
“Timely and accurate reporting of breaches is paramount to safeguarding both consumers and the integrity of the industry,” Ingram said.
General insurance predictions
CGC expects the Australian insurance industry to face more challenges, given the expected increase in frequency of extreme weather events.
Considering the challenges ahead, Ingram advised general insurers to consider volatile claims volume as the “new normal” and prepare for extreme weather events.
“In times of increasing crises, it is imperative that the insurance industry adapts to keep consumers at the forefront of its efforts. We will not accept subscribers using the same excuses in relation to poor handling of claims and complaints due to increased volumes,” she said. “We will be monitoring the implementation and effectiveness of remedial actions and taking further action where necessary to prevent consumer harm.”
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