COTA Australia supports a strong and enforceable General Insurance Code of Practice but is concerned the proposed redraft weakens existing commitments and places too many important consumer protections in unenforceable guidance.
COTA Australia has provided feedback to the Insurance Council of Australia on the redrafted General Insurance Code of Practice and endorsed a detailed joint consumer submission led by Financial Rights Legal Centre.
Insurance is essential to the housing security and financial resilience of many older Australians. Rising premiums, excesses and strata insurance costs are placing increasing pressure on people living on low or fixed incomes. The Code must provide meaningful support for people having difficulty paying their premiums and address the additional costs imposed on customers who pay by instalments.
COTA Australia is also calling for:
- digital and non-digital pathways to be available throughout the insurance process, with insurers required to ask, record and respect customers’ preferred communication methods;
- clear complaints information and measurable timeframes for claims, complaints, hardship applications and urgent repairs;
- enforceable minimum protections for people experiencing vulnerability, rather than relying primarily on voluntary guidance;
- clearer recognition that family and domestic violence, elder abuse and financial abuse are distinct but overlapping forms of harm;
- practical safeguards against misuse of authority, financial coercion and interference with insurance claims or payments;
- clearer and more consistent protections for people whose homes are insured through strata or owners corporation arrangements;
- alternative identity-verification pathways for people who do not have a current driver licence or passport; and
- strong, independent Code governance with consumers represented at every level.
A Code that is enforceable but contains weaker or less practical commitments will not rebuild trust. Older people need insurance systems that are affordable, accessible, clear, responsive and accountable.