A general insurance policy is a contract, but the relationship around it is about more than the wording. How an insurer explains a product before you buy, how it manages a claim after an incident, and how it responds when something goes wrong are all shaped by a set of industry standards known as the General Insurance Code of Practice. For Australian businesses holding general insurance, those standards are worth understanding for two reasons: they set expectations for how you should be treated, and they give you a defined path when the service you receive falls short.
The Code is developed by the Insurance Council of Australia, and its stated aim is to raise the standards of the insurance industry. It sets out the standards that general insurers must meet when providing services to their customers, and it applies across the customer relationship rather than to a single transaction. If your business buys general insurance, the Code sits in the background of nearly every interaction you have with your insurer, from the first quote through to renewal and, if it comes to it, a dispute.
What the General Insurance Code of Practice sets out
The simplest description is also the most useful. The Code sets out the standards that general insurers must meet when providing services to their customers, such as being open, fair and honest. Those three words are the anchor. The Code is not a pricing document and it does not dictate who an insurer must cover or what it must charge. It focuses on conduct.
The Insurance Council of Australia developed the Code to raise industry standards, and it is intended to be a positive influence across all aspects of the general insurance industry, including product disclosure and claims. The Australian Financial Complaints Authority, which lists the Code among the codes of practice it works with, describes it as requiring insurers and other industry participants who have adopted it to provide services to their customers in an open, fair and honest way.
For a business, the standards matter most in the moments when you have the least leverage: mid claim, mid dispute, or in the days after a major event has disrupted trading.
Who is bound by the Code
Subscription to the Code is voluntary. General insurance companies in Australia can choose to subscribe, and by subscribing they commit to high standards of service that extend beyond what is required by law. That is the most practical point for a business owner to absorb. The Code is not a blanket covering every policy in the market. It applies to insurers, and other industry participants, who have adopted it.
So the first question to ask about any policy you are considering is straightforward: does this insurer subscribe to the General Insurance Code of Practice? A broker will usually know the answer, and it is a fair question to put in writing and keep on file. If an insurer has subscribed, the standards in the Code form part of what you can expect, over and above the legal minimum.
If you are unsure whether a particular product falls within the Code’s scope, confirm it with the insurer directly or check the Code’s own website rather than assuming. Scope questions are best answered by the source document.
What the Code covers across the life of a policy
The Code is written to follow the customer relationship rather than a single sale. It covers many aspects of a customer’s relationship with their insurer, from buying insurance, to making a claim, to making a complaint. More specifically, it sets out standards insurers must meet whenever a customer buys insurance, makes a claim, is affected by a catastrophe, is experiencing financial hardship or other vulnerability, or makes a complaint.
| Stage of the relationship | What the Code addresses |
|---|---|
| Buying insurance | Conduct standards at the point of sale, including product disclosure |
| Renewing insurance | Standards that apply to the ongoing relationship, not just the initial purchase |
| Making a claim | Claims handling standards |
| Being affected by a catastrophe | Specific standards that apply when a major event affects customers |
| Financial hardship or vulnerability | Standards for how insurers respond to customers in difficult circumstances |
| Making a complaint | Complaint handling standards, with escalation available outside the insurer |
For a business, the claims row is where the Code earns its keep. Large commercial claims are rarely resolved in a week, and the difference between an insurer that keeps you informed and one that goes quiet is often the difference between a project staying on schedule and a project stalling. Handling claims and complaints is explicitly part of what the Code sets standards for.
When a catastrophe affects your business
The Code treats catastrophes as a distinct scenario rather than an unusual version of a normal claim. It sets out standards insurers must meet whenever a customer is affected by a catastrophe. For Australian businesses, that carries real weight. Bushfire, flood, cyclone and storm events can hit premises, plant, stock and active projects at the same time, and the administrative burden lands on the business while it is also trying to keep operating.
What the Code does not do is promise a particular outcome or a particular timeline for your business. It sets conduct standards. The practical value lies in knowing that a subscribing insurer has committed to a defined standard of behaviour in an event of that scale, and in keeping your own records in order so you can hold them to it.
Financial hardship and vulnerability
The Code also sets standards for customers experiencing financial hardship or other vulnerability. For a business, hardship can arrive quickly and without much warning: a delayed progress payment, a client entering administration, a contract cancelled mid build. Premiums and instalments keep falling due even when cash flow tightens.
If your business reaches that point, raise it with your insurer or broker early rather than letting a policy lapse quietly. The Code recognises hardship and vulnerability as circumstances calling for specific standards of conduct, and a subscribing insurer is expected to respond within that framework.
Complaints and escalation
Complaints sit inside the Code, not outside it. Making a complaint is one of the listed situations the Code sets standards for, and the Australian Financial Complaints Authority is the external dispute resolution body that lists the Code among the codes of practice it works with.
The usual sequence is to raise the issue with the insurer first through its internal complaints process, then escalate to the Australian Financial Complaints Authority if it is not resolved. The authority publishes a free call line, 1800 931 678, available 8am to 6pm AEST/AEDT on weekdays, along with a separate member line. Keeping dated notes of every call, email and decision makes escalation considerably easier.
The independent review and the redrafted Code
The Code is not static. It must be independently reviewed every three years, and in December 2024 the independent panel reviewing the 2020 General Insurance Code of Practice released its Final Report. That review process matters to businesses because it shapes the version of the Code insurers will be measured against in the years ahead.
Commentary from PwC on the redrafted Code describes it as setting standards of conduct across the insurance lifecycle, including product disclosure, claims handling and investigations. The emphasis on investigations is worth noting for commercial and construction claims, where a loss is often examined in detail before any decision is issued. If the summary you are reading is older than the current version, check the Code’s own website for the wording in force before relying on it.
What this means for your insurance program
Knowing the Code exists is not the same as using it. A handful of habits turn it into something practical for a business.
- Ask every insurer in your program whether they subscribe to the Code, and record the answer next to your policy schedule.
- Work from the current version of the Code rather than an old summary or a blog post written before the last review.
- Keep written records of incidents, notifications and claim correspondence, including dates and who you spoke to.
- Raise financial difficulty early with your insurer or broker instead of letting cover lapse.
- Know the escalation path before you need it, so a stalled claim does not sit unresolved for months.
- Review the position at each renewal, because insurer subscriptions and Code wording can both change.
Where to find the Code
The Code is published in full at insurancecode.org.au, which also offers a PDF version to download. The Insurance Council of Australia and the Australian Financial Complaints Authority both publish explanatory pages about the Code, which are useful for context but should not replace the source document.
Because the Code is reviewed and can be redrafted, always confirm you are reading the version currently in force. If you need certainty on a live claim or a policy decision, ask your broker or the insurer for the relevant wording in writing.
How ABS Insurance Brokers can help
ABS Insurance Brokers Pty Ltd is an Australian-owned brokerage based at Bankstown Airport in Sydney, NSW, arranging business, construction, aviation and commercial insurance for Australian businesses, along with developer finance and building consultancy. Part of the value of working with a brokerage is that the Code questions get asked on your behalf: which insurers subscribe, what the standards mean for a claim, and how to escalate when a decision does not sit right.
If you want your business insurance program reviewed with those standards in mind, speak with the team and we will work through your cover, your insurers and your claims history together.
Frequently Asked Questions
Is the General Insurance Code of Practice mandatory for insurers?
The Code is voluntary. General insurance companies in Australia can choose to subscribe, and by subscribing they commit to high standards of service that extend beyond what is required by law. Because it is not compulsory, businesses should check whether each insurer they deal with has adopted it rather than assuming the Code applies to every policy on the market.
What does the Code cover?
It covers standards across the customer relationship, from buying and renewing insurance through to claims and complaints. The Code also sets standards for customers affected by a catastrophe, and for those experiencing financial hardship or other vulnerability. Insurers who have adopted it are expected to provide services in an open, fair and honest way.
How often is the Code reviewed?
The Code must be independently reviewed every three years. In December 2024, the independent panel reviewing the 2020 General Insurance Code of Practice released its Final Report. Reviews of this kind can lead to a redrafted Code, so it is worth checking the Code’s own website for the version currently in force before relying on older summaries.
What can I do if I think my insurer has not met the Code?
Start with the insurer’s internal complaints process and keep a written record of what you raised and when. If the matter is not resolved, the Australian Financial Complaints Authority is the external dispute resolution body, and it lists the Code among the codes of practice it works with. Your broker can help you frame and escalate a complaint.
Where can I read the General Insurance Code of Practice?
The Code is published at insurancecode.org.au, which also offers a PDF version to download. The Insurance Council of Australia and the Australian Financial Complaints Authority both publish explanatory pages about it. Always work from the current version rather than an older summary, because the Code is reviewed periodically and can be redrafted.
