General Insurance Code Governance Committee releases its 2022-23 Annual Report

The General Insurance Code Governance Committee’s (CGC) 2022-23 Annual Report highlights its ongoing efforts to improve industry compliance and accountability.

Delays in reporting significant breaches continue to concern the CGC.

A number of subscribers failed to report breaches in a timely manner, leading to potential risks for both consumers and the industry.

Veronique Ingram, CGC Chair reminded subscribers of the importance of quality reporting.

“Timely and accurate reporting of breaches is paramount to safeguarding both consumers and the integrity of the industry,” she said.

58,104 breaches were self-reported by subscribers for the period 1 July 2021 to 30 June 2022. 123 significant breach matters were reported by Code subscribers (up from 116 in 2021–22). 86 significant breaches were referred to the Australian Securities and Investment Commission (ASIC) since 31 December 2022.

The report also highlights the coming challenges facing the general insurance industry, given the expected increase in frequency of natural disasters.

Ms. Ingram advised subscribers to consider volatile claims volumes as the ‘new normal’ and prepare for anticipated weather events accordingly.

“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.

“We will be monitoring the implementation and effectiveness of remedial actions and taking further action where necessary to prevent consumer harm,” Ms. Ingram said.

You can read the full 2022-23 CGC Annual Report on their website.