General Insurance Code of Practice Changes 2026 – What Insurers and Consumers Need to Know

The General Insurance Code of Practice (GICOP) is undergoing its biggest overhaul in years, with major reforms due in 2026. These changes are designed to strengthen consumer protections, clarify insurer obligations, and make key commitments legally enforceable.

This update follows the 2022 Flood Inquiry and the Independent Code Review, which found significant gaps in claims handling, customer communication, and support for vulnerable policyholders .

1. Why Are the GICOP Changes Happening?

The new Code is being driven by two major forces:

• Flood Inquiry Findings – revealed delays in claims processing, inconsistent use of expert reports, and poor support for customers during extreme weather events .
• Independent Code Review – confirmed that while the Code has lifted industry standards, it needs stronger enforceability and clearer consumer rights .

The Insurance Council of Australia (ICA) has committed to delivering a rewritten Code that works in practice, meets public expectations, and aligns with community standards .

2. Key Changes to the Insurance Code of Practice

The new General Insurance Code of Practice 2026 is expected to introduce:

• Greater contractual enforceability – Code obligations embedded directly into insurance contracts.
• Plain-language policy rights – easy-to-read wording so consumers clearly understand their entitlements.
• Expert Report Best Practice Standard – ensuring fairness, transparency, and timely delivery of reports.
• Extreme Weather and Disaster Response Charter – setting clear expectations for disaster event responses.
• Vulnerable Customer Framework – with defined criteria and mandatory insurer obligations.
• Standard definitions for home maintenance and wear-and-tear to reduce disputes.
• Internal Consumer Advocates – within insurers to support customers with complex claims.

These reforms follow directly from the Flood Inquiry recommendations and aim to improve trust, transparency, and fairness in the insurance industry .

3. Legal Enforcement – What It Means for Insurers

One of the most significant changes is making GICOP legally enforceable by incorporating it into insurance contracts – similar to the Banking Code of Practice .

This means:

• Claims handling deadlines will become legally binding, with potential compensation for delays.
• Transparency obligations (e.g., sharing expert reports) will be enforceable in court or through AFCA.
• Support for vulnerable customers and hardship provisions will carry legal consequences if breached.
• Complaint resolution timeframes will be contractual obligations.
• Pricing and renewal fairness (if included) could require refunds or adjustments if breached.

For insurers, this elevates Code compliance to the same level as statutory law under the Corporations Act.

4. Timeline and Next Steps

• Q1 2026: Public consultation on the draft Code.
• Q2 2026: Final release of the new General Insurance Code of Practice.
• Post-release: Transition period for insurers to update policy wordings, systems, staff training, and compliance frameworks .

5. Why This Matters

The GICOP 2026 reforms are more than compliance updates — they represent a shift towards binding, enforceable commitments that will reshape the relationship between insurers and customers.

At Curium, we’ll be closely monitoring the Code rewrite process and helping insurers adapt early with robust compliance systems, clear customer communication strategies, and practical tools to meet the new legal standards.

Further Reading

1. Insurance Code of Practice Review – Final Report
2. House of Representatives – 2022 Flood Inquiry Recommendations
3. Insurance Council of Australia – New Insurance Code Announcement