THE Insurance Council of Australia Board (ICA Board) today approved a new General Insurance Code of Practice (Code) after one of the most extensive reviews in the Code’s 25-year history.

The Code sets out standards that are above and beyond legal requirements and aims to meet and anticipate consumer expectations. It has been comprehensively updated and rewritten to further enhance the rights and expectations that insurance customers can have about their relationship with their insurer.

The Code will be formally launched in early 2020. ICA members and other Code participants will start to transition to it from January 1, 2020, with all Code signatories to be compliant by January 1, 2021. All Code signatories will also be required to introduce and implement a publicly available policy to support customers affected by family violence by July 1, 2020.

ICA Board President Richard Enthoven said, "The new Code provides a significant improvement to consumer outcomes in their dealings with insurers, their distributors and their service providers.

“We now have provisions for customers experiencing vulnerability, including a requirement for signatories to have a policy to support people affected by family violence and provisions for customers who are experiencing mental health conditions.  

“The insurance industry has enhanced its financial hardship provisions. The Code also provides enhanced sanction powers to the independent Code Governance Committee for breaches of the Code, and includes a community benefit payment by insurers that commit significant breaches.”

Mr Enthoven said the ICA Board believed the new Code would set the benchmark for self-regulation in Australia and would help the insurance sector strengthen its reputation and relationship with customers, consumer advocates, regulators and governments.

“The new Code of Practice is the result of more than 2½ years of consultation and development,” he said.

“It has been one of the most thorough and wide-reaching reviews and revisions of the Code ever undertaken since the first Code was developed in 1994.

“Though the review process started well before the announcement of the Financial Services Royal Commission, the Code reflects Royal Commission recommendations alongside the Code Review Final Report and reports from a range of stakeholders.

“The ICA Board appreciates the expertise, input and guidance provided by many stakeholders including ICA member companies, the industry’s National Code Committee, consumer representative organisations, the Australian Securities and Investments Commission, legal aid services, the Australian Financial Complaints Authority, the Code Governance Committee and members of the community.”

The new Code will be publicly available from January 2020.

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GOTHENBURG, Sweden,-- SKF is today launching a Green Finance Framework. By engaging in green financing, SKF's funding strategy will become more aligned with the Group's climate objectives, to reduce CO2 emissions from its own manufacturing and supply chain operations as well as supporting customers to reduce their emissions.

Within the Green Finance Framework, SKF intends to finance investments that support the transition to a low-carbon, climate resilient growth and lower environmental impact.

Niclas Rosenlew, senior vice president and CFO, said, "Sustainability is integrated into our strategy and business models. Our products help to reduce friction, energy and water consumption. Our offerings have always had an impact in these areas and by making sure our financing structure also contributes to a more sustainable world, we are taking the next step in our sustainability strategy."

SKF's climate objectives focus on reducing emissions across the entire value chain. With 2015 as the base year, SKF aims to reduce its CO2 emissions from manufacturing per tonne of sold bearings and transported goods by 40 percent, respectively. The group is well on its way to achieving these goals ahead of the target of 2025.

Niclas Rosenlew said, "We are currently making substantial investments in our own operations to increase flexibility, improve productivity and safety, as well as to decrease our environmental footprint. Our position within the cleantech field also enables us to contribute to the growth of industries such as renewable energy and electric vehicles."

SKF's Green Finance Framework follows the Green Bond Principles and the Green Loan Principles. The Green Finance Framework has been independently evaluated by the Center for International Climate Research (CICERO).

Within the Green Finance Framework, SKF's intention is to issue a green bond in the near future. The Green Finance Framework is available for download at https://www.skf.com/group/investors/green-finance-framework.

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THE Queensland Resources Council (QRC) has welcomed the State Government’s announcement today that an additional 30,000 square kilometres of land in the Surat, Bowen and Galilee basins would be released for gas exploration.

QRC chief executive Ian Macfarlane said the government’s release of land for exploration for all resources was essential to creating jobs, attracting investment, boosting exports and ultimately generating additional revenue for the Queensland Government in the form of royalties.

“QRC has consistently pushed for extra land to be released for exploration and development.  We have been very supportive of the release of areas for exploration and development to service the domestic gas market, supporting industry, jobs and households here in Queensland,” he said.

Mr Macfarlane said stable policy, particularly in access to resources and clear approval processes, was essential for the development of the resources sector.

www.qrc.org.au

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THE Financial Services Council (FSC) Guide on the Prevention of Elder Financial Abuse (The Guide) was launched today signalling an important step by the financial services sector towards ending the financial abuse of older Australians.

FSC CEO Sally Loane said caring for an ageing population presents society with a range of risks and challenges, and financial abuse of elderly citizens is an area becoming unacceptably prevalent in Australian society.

“The guide is a starting point for non-banking financial services organisations to identify, address and prevent the financial abuse of their older clients and customers,” Ms Loane said.

“It is vital that every sector of the wealth and asset protection industry, including those working in superannuation, advice, trustee companies and life insurance, are equipped with the guidance they need to navigate this complex but intolerable problem.

“Acknowledging the range of sensitivities with elder financial abuse, The Guide does not prescribe a one-size-fits-all framework, but rather sets out ways in which organisations can voluntarily adapt and employ aspects of best practice risk management strategies.

“Strategies range from developing protocols on how to respond to suspected financial abuse through to reviewing safeguards surrounding Powers of Attorney.”

Download a copy: https://fsc.org.au/resources/1874-the-fsc-guide-to-the-prevention-of-elder-financial-abuse-2019/file

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.

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