On 22 October 2026 the Insurance Council of Australia (ICA) submitted a redrafted General Insurance Code of Practice (GICOP) to ASIC for approval. It is not in force yet, and the current Code stays in place until it is. Two changes stand out. First, the Code would apply only to defined lists of retail and small business wholesale products, and not to anything outside them. Second, insurer obligations in Sections 1 to 9 would become part of the policy contract, so customers could enforce them in court, through AFCA or through the Code Governance Committee. It also adds automatic acceptance of home and motor claims after 12 months and doubles the maximum community benefit payment to $200,000.
Current Code vs proposed Code: what changes?
| Topic | Current Code (2020, updated October 2023) | Proposed Code |
| Products covered | Retail Insurance, plus Wholesale Insurance defined as any other covered product, so most commercial covers were inside the Code for its general parts (paragraphs 10 to 12) | Retail Insurance, plus a closed list of small business Wholesale covers. Products outside both lists are not covered (paragraphs 4 to 6) |
| Legal status | Voluntary. Insurers contract with the ICA, and the Code creates no rights between an insurer and anyone else (paragraph 15) | Sections 1 to 9 form part of the policy. Customers can enforce them (paragraphs 21 to 24) |
| Structure | 16 parts | Industry Principles plus 10 sections |
| Claim decision | Within 4 months, or up to 12 months in listed circumstances | Within 4 months unless the insurer gives written reasons (paragraph 76) |
| Automatic acceptance | None | Home building, home contents and non-fleet motor claims accepted after 12 months without a decision, unless Delay Factors apply (paragraph 78) |
| Renewal notice | No timeframe in the Code text | Written notice at least 14 calendar days before expiry, plus an electronic reminder (paragraph 39) |
| Expert reports | Report requested within 12 weeks | Report within 60 Business Days, and insurers must follow the ICA's Expert Report standard (paragraphs 72 to 74) |
| Vulnerability | Retail Insurance only | Retail and listed Wholesale Insurance for individuals, with a circumstances-based definition and Extra Care recorded with permission |
| Complaints | Retail Insurance, with limited wholesale application | Also applies to the listed small business Wholesale covers |
| Family and domestic violence | Public policy and staff training | Adds a quick-exit button, safeguards against misuse of products, and no need for an intervention order (paragraphs 157 to 159) |
| Cash settlements | Information on how they work | Required processes, scope of works, a calculation basis and a 12-month review right (paragraphs 92 to 97) |
| Maximum community benefit payment | $100,000 | $200,000, indexed to CPI |
| Significant Breach reporting to the committee | 10 Business Days | 30 Calendar Days |
| Code review | Every 3 years | Every 5 years |
Source: paragraph references are to the ICA's proposed Code and the current Code published on the ICA website.
The Code now applies only to listed products
The proposal redefines Retail Insurance and Wholesale Insurance, and the Code applies only to products on those lists.
Retail Insurance is a product for an individual, or for use in connection with a Small Business, that is one of: motor vehicle, home building (including a strata policy where at least 50% of the floor space is residential), home contents, sickness and accident, consumer credit, travel, or personal and domestic property, including pet insurance. The whole Code applies to these. The retail categories match the current Code. The proposal adds pet insurance and the strata test expressly.
Wholesale Insurance is no longer a catch-all for any other product. It is a closed list of small business covers: computer and electronic breakdown, fire or accidental damage (including strata policies under 50% residential), general property, glass, land transit, machinery breakdown, money, theft, business interruption, and motor vehicles over 2 tonnes. Only some sections apply to it: investigations, complaints, vulnerability, financial hardship, standards for employees and distributors, and enforcement. The proposal expressly excludes contractors all risks, fidelity guarantee, legal liability (including public and products liability), professional indemnity (including management liability and directors' and officers' cover) and industrial special risks.
Under the current Code, Wholesale Insurance meant any covered product that was not Retail Insurance, so those commercial products sat inside the Code's general parts. Under the proposal they would sit outside it. Cover for a larger business is not on either list, so it is not covered either. The existing exclusions, such as workers compensation, CTP, medical indemnity, marine, reinsurance, life and health, carry over.
For brokers placing commercial lines, the effect mirrors NIBA's Insurance Brokers Code, where automatic remuneration disclosure is also tied to retail products. Clients buying cover outside the lists get no protection from the General Insurance Code.
When will the new General Insurance Code take effect?
Not yet. The ICA has submitted the Code to ASIC, which will consider it for approval. The ICA says a transition period is then expected before the Code begins to take effect on new and renewed policies. The commencement date in the proposed text is blank. In its June consultation paper the ICA anticipated a 24-month transition, and the General Insurance Code Governance Committee recommended shortening it. Only the Banking Code of Practice currently holds ASIC approval.
Enforceability is the headline, and the exceptions matter
Under the proposal, if an insurer breaches a paragraph in Sections 1 to 9, the customer can complain to the insurer, the Code Governance Committee or AFCA, or sue for breach of contract. The Industry Principles and Section 10 on enforcement stay outside the contract, and third parties such as beneficiaries cannot enforce the Code contractually.
Paragraph 23 sets the limits. The policy wording prevails if it conflicts with the Code, the Code is not a condition or warranty, and the insurer is not liable for timeframes missed during an Extraordinary Event, for failures caused by events beyond its control, for indirect loss, or where a different timeframe was agreed. NIBA raised the policy-prevails rule and the beyond-control exclusion in its July submission, and consumer groups argued that exceptions weaken enforceability.
Automatic acceptance has a long list of exceptions
A Property Claim that has no decision after 12 months is automatically accepted up to policy limits. A senior employee must review the claim at least three months before that date. The Delay Factors that stop the clock include a claim under Investigation, a complaint to the insurer or AFCA, legal proceedings, and delays outside the insurer's control. The practical effect depends on how often those apply.
The provision responds to the complaints data. AFCA received 36,022 general insurance complaints in 2025-26, up 5%, the fifth consecutive annual rise. Claim handling delays accounted for 8,246, up 25%.
What the proposed Code means for brokers and MGAs
The Code binds insurers, not brokers. Brokers are bound by NIBA's Insurance Brokers Code of Practice, which is a separate code. But the proposal reaches broking and delegated authority in four ways.
• Information goes through the broker. In the buying and cancelling sections, an insurer meets its obligations by giving the information to the broker. NIBA asked that this does not reduce customer protections and that brokers are kept informed of claims correspondence.
• Nominees. An insurer treats a nominee's instructions as the customer's, unless the customer says otherwise, and may contact the customer directly in defined cases.
• Distributors. A person acting under a binder is a Distributor. The insurer is responsible for their conduct, must require them to meet the Code in contracts signed after the commencement date, must have them trained, and must require them to report breaches promptly and pass on complaints within 2 Business Days.
• Claims managers. A broker who manages claims for an insurer is an Insurance Claims Manager and counts as a Service Supplier.
Contractual exposure raises the compliance bar
PwC's view is that once obligations are contractual, insurers must be able to demonstrate, monitor and assure compliance. The Code Governance Committee's submission on the June draft also raised concern that changes to monitoring arrangements could let breaches go undetected or unresolved. Whether the October text responds to that is worth checking against the final wording.
Six steps while ASIC considers the Code
1. Map every paragraph in Sections 1 to 9 to your policy wording and product disclosure statements, since they would become contract terms.
2. Build a process for Property Claims that tracks the 4-month and 12-month dates, the three-month senior review and the Delay Factors.
3. Review binder and distributor agreements for the standards, training, breach reporting and 2-Business-Day complaint pass-through.
4. Confirm which of your products fall inside the Retail and Wholesale lists, then extend vulnerability, complaints and hardship processes to the listed small business wholesale covers and record Extra Care with permission.
5. Check expert report processes against the ICA's Expert Report standard and the 60 Business Day limit.
6. Plan the transition now, and watch ASIC's decision and the commencement date.
Insurers and MGAs: make Code compliance provable before it becomes contract.
Frequently asked questions
Is the new General Insurance Code in force? No. It was submitted to ASIC on 22 October 2026. The current Code stays in force until a transition period ends.
Does the Code apply to all commercial insurance? No. It would apply only to the listed Retail Insurance products and the closed list of small business Wholesale covers. Liability, professional indemnity, contractors all risks, fidelity guarantee, industrial special risks and larger business cover are outside it.
Will the new Code be legally enforceable? The proposal makes Sections 1 to 9 part of consumer insurance contracts, with exceptions in paragraph 23.
What is automatic claim acceptance? If a home building, home contents or non-fleet motor claim has no decision after 12 months, the insurer must accept it up to policy limits, unless Delay Factors apply.
What is the renewal notice period? The proposal requires written notice at least 14 calendar days before expiry.
Does the Code apply to brokers? It binds insurers. Brokers follow NIBA's Insurance Brokers Code of Practice. A broker acting under a binder, or managing claims for an insurer, is covered through the insurer's obligations.
Who monitors the Code? The General Insurance Code Governance Committee.
Is it the same as the Insurance Brokers Code of Practice? No. The ICA's General Insurance Code applies to insurers. NIBA's Code applies to brokers.
Sources
• Proposed General Insurance Code of Practice, Insurance Council of Australia
• General Insurance Code of Practice (current Code, October 2023), Insurance Council of Australia
• Insurers submit enhanced Code of Practice to regulator, Insurance Council of Australia, 22 October 2026
• Consultation on a Redrafted General Insurance Code of Practice, Insurance Council of Australia, June 2026
• Insurers face legally binding Code obligations for first time under revised Code of Practice, Insurance Business Australia, 22 October 2026
• Draft Code would make insurer promises enforceable in court as ASIC lodgement slips twice, Insurance Business Australia
• What the redrafted General Insurance Code of Practice means for insurers, PwC, 26 August 2026
• General Insurance Code Governance Committee submission on the redrafted Code, August 2026\
Author:
Tetiana George, CEO of Curium, Co-Chair of Insurtech Australia and member of ASIC Digital Finance Advisory Committee. LinkedIn Profile.