The Association of Insurance Building & Engineering Consultants says draft changes to the general insurance code of practice relating to claims handling are moving in the right direction and provide more clarity around roles.

CEO Tony Libke says the draft code recognises that many reports prepared during the claims process are intended to assess damage and do not meet the standard required to be considered expert reports.

“The carveout for ‘claims fulfilment providers’ is an important acknowledgment of the distinct roles played by builders, restorers and repairers compared with independent experts,” Mr Libke said.

“This distinction was a central theme of AiBEC’s submission to the Insurance Council of Australia during the code review process, including our advocacy for a tiered approach to reporting.”

The draft, released yesterday, includes a new definition for claims fulfilment providers and distinguishes them from external experts contracted solely to provide an independent, detailed and expert report to insurers about the likely cause of a loss or damage.

Mr Libke says the changes will provide clearer guidance for all participants in the claims process.

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The new code also introduces a clause saying insurers will comply with – and instruct external experts to comply with – ICA’s Use of Expert Reports guide, “as amended, updated or replaced from time to time”.

AiBEC says reviews of the guide, released by ICA in 2024, should be conducted annually and involve consultation with stakeholders including the association.

The association will also consider whether the code should go further by mandating that an expert report be obtained in property claim disputes.

Mr Libke says the draft’s more detailed description of loss adjusters’ role in the claims process also provides more clarity regarding their responsibilities and contributions.

AiBEC will consult with members as it reviews the draft before making a formal submission to ICA.

The association was established two years ago to support professional engineering and building consultants working in the insurance industry.

Submissions on the draft are due by July 21 and ICA expects to later this year seek Australian Securities and Investments Commission approval for the document.

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