ASIC Code Consultation Puts Insurer Standards Back in Focus

The Insurance Council of Australia lodged the proposed code with ASIC on 22 October 2026, marking the first time the industry has sought formal regulatory approval for the code. The redraft follows an independent review and recommendations arising from parliamentary scrutiny of insurer responses to the 2022 floods. It also continues the long-running review of the General Insurance Code of Practice, which has been a recurring issue for businesses and consumers concerned about claim delays, communication standards and accountability.

The proposed changes include stronger treatment of claims handling, support for customers experiencing vulnerability, family violence protections and standards for expert reports. ASIC has also noted that the ICA says the revised code would make obligations contractually enforceable through insurers’ contracts with consumers. That is significant in principle, although the final effect for any business will depend on the approved wording, the type of policy, the circumstances of a claim and the way insurers implement the code in practice.

For office-based SMEs, the immediate message is not that cover has changed overnight. ASIC has not yet approved the code, and it has made clear that approval would not transfer ownership, monitoring or enforcement responsibility for the code to ASIC. However, the consultation is a reminder that policy quality is not only about price. The conduct standards around assessment, communication, expert evidence and complaint pathways can become highly important when a fire, storm, theft, liability claim or business interruption event places pressure on cash flow.

Businesses reviewing office insurance arrangements may wish to keep several practical points in mind:

• Policy wording, limits, exclusions and sub-limits remain central, regardless of broader industry conduct reforms.
• Claims preparation matters, including asset records, maintenance documents, incident notes, photographs and correspondence.
• Clear internal responsibility for insurance documents can reduce confusion when a claim or complaint arises.
• Where external experts are used in a claim, businesses should understand what has been assessed, what evidence was considered and how conclusions affect the insurer’s decision.

The consultation also comes at a time when many SMEs remain alert to insurance affordability and availability pressures. A more robust code may help lift expectations around service standards, but it will not remove the need for businesses to compare cover carefully, read disclosure documents and consider whether their policies reflect current operations, property values, client contracts and emerging risks. The key uncertainty is what ASIC will ultimately approve, and whether the final version leads to clearer, more consistent outcomes when SMEs need their insurance most.