The Insurance Council of Australia has unveiled a draft version of its new code of practice, which will for the first time be legally enforceable as part of contracts.

Other changes include automatic acceptance of home and motor claims after 12 months when no decision has been made, subject to defined exceptions.

Higher standards are set out for expert reports and requirements have been strengthened for primary points of contact in claims handling and cash settlements.

The document also provides a new circumstances-based definition of vulnerability, an extra care framework setting out additional support and flexibility for vulnerable customers, and broader family violence protections.

“The world has changed and the code needs to keep pace with those changes; customers face more frequent extreme weather, more complex claims and new technology that is reshaping every part of the insurance process,” CEO Andrew Hall said this morning.

The code also contains a clarified definition of wholesale insurance that identifies the types of policies a small business can hold that are covered.

A review of the 2020 General Insurance Code of Practice was launched in November 2023, and the review committee released a final report, with more than 100 recommendations, in late 2024.

An extensive rewrite announced by ICA last year also followed the federal parliamentary inquiry into 2022 flooding, which directed recommendations to the industry.

The consultation period for the draft code runs until July 21.