--- title: "General Insurance Code of Practice Changes 2026 – What Insurers and Consumers Need to Know" url: "https://getcurium.com/news/general-insurance-code-of-practice-changes-2026/" published: "13 August 2025" author: "Alex Simpson, Chief Product Officer" publisher: "Curium" description: "2026 reforms to the General Insurance Code will make insurer obligations enforceable and raise standards for claims, disasters and vulnerable customers." --- # General Insurance Code of Practice Changes 2026 – What Insurers and Consumers Need to Know 2026 reforms to the General Insurance Code will make insurer obligations enforceable and raise standards for claims, disasters and vulnerable customers. 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](https://insurancecouncil.com.au/resource/new-insurance-code-to-deliver-for-consumers/)