Most Australian businesses buy general insurance because a lender, a contract or plain good sense requires it. Far fewer read the rulebook sitting behind the policy. The General Insurance Code of Practice is that rulebook, and it shapes how subscribing insurers deal with customers from the first quote through to a disputed claim. For a business owner, knowing what the Code demands of insurers makes you a sharper buyer and a better prepared claimant.
What the General Insurance Code of Practice Is
The General Insurance Code of Practice is a document developed by the Insurance Council of Australia Limited. It sets out the standards that general insurers must meet when providing services to their customers, and its stated purpose is to raise standards across the insurance industry.
The Code is best understood as a conduct document rather than a policy document. It does not tell you what your building or liability cover includes. It tells you how the insurer is expected to behave while selling that cover, administering it and responding when something goes wrong. The Australian Financial Complaints Authority summarises the obligation at the centre of it simply: insurers and other industry participants who have adopted the Code are required to provide services to their customers in an open, fair and honest way.
The Code also sets out specific standards insurers must meet whenever a consumer buys insurance, makes a claim, is affected by a catastrophe, is experiencing financial hardship or other vulnerability, or makes a complaint. That list alone shows how far the Code reaches into the practical relationship between an insurer and a business customer.
Subscription Is Voluntary, but the Commitment Is Real
General insurance companies in Australia can volunteer to subscribe to the Code. It is not imposed on every insurer in the market by default. When an insurer subscribes, it commits to high standards of service that extend beyond what is required by law.
That distinction matters commercially. Two insurers can offer broadly similar policy wordings while operating under different conduct commitments, and the difference tends to show up at the two moments that hurt most: when a risk is being placed and when a claim is being tested. Asking whether an insurer subscribes to the Code is a reasonable question for any business to put to its broker or its account manager.
What the Code Covers Across the Insurance Lifecycle
The Code is intended to be a positive influence across all aspects of the general insurance industry, including product disclosure and claims. Its standards are described as applying across the insurance lifecycle. The table below maps the main stages a business customer moves through and what the Code addresses at each point.
| Stage of the relationship | What the Code addresses |
|---|---|
| Buying insurance | Standards around product disclosure and the way cover is sold and explained to a customer. |
| Making a claim | Standards for claims handling and for the investigations an insurer carries out. |
| Catastrophe events | Standards for how insurers deal with customers affected by a catastrophe. |
| Hardship and vulnerability | Standards for customers experiencing financial hardship or other vulnerability. |
| Complaints | Standards for handling complaints, sitting alongside the external dispute resolution framework. |
For a construction or trades business, the claims and investigations line is the one that carries the most weight. Contract works, public liability and property claims often turn on evidence gathered after an incident, and the Code speaks directly to how that process should be conducted.
The Three-Year Review Cycle and What Is Changing in 2026
The Code must be independently reviewed every three years. That requirement keeps the benchmark moving rather than fixed. The independent review of the 2020 General Insurance Code of Practice was conducted by a panel, which released its Final Report in December 2024. Commentators reviewing the redrafted Code describe it as setting standards of conduct across the insurance lifecycle, including product disclosure, claims handling and investigations.
For 2026, the practical takeaway for business clients is that expectations placed on subscribing insurers continue to tighten, and the areas that move first are the areas a business cares about most: what you are told when you buy, how a claim is handled and investigated, and how a complaint is resolved. Because the Code is revised over time, confirm the current wording and any commencement detail with the official Code source rather than relying on a summary, including this one.
Why the review cycle matters to a business buyer
A Code reviewed on a fixed cycle means the version an insurer was working to a few years ago may not be the version in force now. If a dispute hinges on the standard an insurer was expected to meet, the relevant version of the Code matters. When a claim becomes contested, it is worth asking your broker which iteration of the Code applied at the time, and what it said about the conduct in question.
What This Means in Practice for Australian Businesses
You do not need to memorise the Code to benefit from it. You need to know where it touches your business and how to use it when a matter becomes difficult.
- Ask whether the insurer subscribes to the Code before you place cover, particularly where you are choosing between otherwise similar quotes.
- Treat the disclosure stage seriously in both directions. The Code addresses product disclosure, and the information exchanged at inception is what an insurer later relies on.
- Keep contemporaneous records, including incident reports, site diaries, maintenance records and photographs. Investigations run on evidence, and businesses that document events early are in a stronger position later.
- Raise concerns as they arise rather than after a decision is final. The Code covers complaints as a distinct stage, and the internal process is the first step.
- Review your program when the Code is reissued. A refresh of the standards is a sensible prompt to check your sums insured, your disclosures and your claim procedures.
How the Complaints Pathway Works
Complaints sit inside the Code as their own category of standard. The usual sequence runs from the insurer’s internal complaints process through to external dispute resolution if the matter is not resolved. The Australian Financial Complaints Authority is the external body that publishes guidance on the Code and deals with complaints about insurers. Its free call line, 1800 931 678, is available from 8am to 6pm AEST/AEDT on weekdays. Confirm current contact details and hours on the AFCA website before lodging anything.
For a business, the discipline is straightforward. Document the issue, state clearly what outcome you are seeking, keep a record of who you spoke to and when, and escalate in the correct order. Complaints that arrive with a timeline and supporting documents tend to move faster than complaints that arrive as a narrative.
Where a Broker Fits In
Code compliance is the insurer’s obligation, not yours. Your role is to buy well and to present your position clearly when a claim or complaint is in play. That is where a broker earns their place.
ABS Insurance Brokers Pty Ltd is an Australian-owned brokerage based at Bankstown Airport in Sydney, arranging specialist business, construction, aviation and commercial insurance, along with adjacent services including developer finance and building consultancy. A broker can tell you which insurers subscribe to the Code, translate policy wordings into plain language, help build a claim submission that answers the questions an investigator will ask, and manage the escalation pathway if a decision does not stack up.
Where to Verify the Current Rules
The Code is developed by the Insurance Council of Australia, and the Code Governance Committee publishes the Code itself and supporting material at insurancecode.org.au, including a PDF version of the document. AFCA also publishes guidance on the Code from a complaints perspective. Because the Code is reviewed every three years and reissued over time, always check the current published version at those official sources when a specific standard matters to your business.
Frequently Asked Questions
Who does the General Insurance Code of Practice apply to?
The Code applies to general insurers and other industry participants that have chosen to subscribe to it. Subscription is voluntary, but once an insurer subscribes it commits to service standards that extend beyond what the law requires. AFCA notes the Code requires insurers and other industry participants who have adopted it to provide services to customers in an open, fair and honest way.
Does the Code cover claims as well as buying insurance?
Yes. The Code sets specific standards for consumers who buy insurance, make a claim, are affected by a catastrophe, are experiencing financial hardship or other vulnerability, or make a complaint. Claims handling and investigations are among the areas the redrafted Code addresses, so the standards continue long after the policy has been issued.
Is subscribing to the Code compulsory for insurers?
No. General insurance companies in Australia can volunteer to subscribe. Code coverage is therefore not automatic across every insurer in the market. It is reasonable to ask a prospective insurer or your broker whether that insurer subscribes and what the commitment covers, especially where two quotes look otherwise comparable.
How often is the Code reviewed?
The Code must be independently reviewed every three years. The independent review of the 2020 General Insurance Code of Practice was conducted by a panel, which released its Final Report in December 2024. Because reviews happen on that cycle and the Code is reissued, businesses should check the current published version rather than relying on older summaries.
Where can I complain if I am unhappy with my insurer?
Start with the insurer’s internal complaints process. If the matter remains unresolved, the Australian Financial Complaints Authority publishes guidance on the Code and accepts complaints about insurers. Its free call line, 1800 931 678, operates from 8am to 6pm AEST/AEDT on weekdays. Check the AFCA website for current details before lodging a complaint.
