ASIC Review Keeps Insurance Service Standards in the Spotlight

The development follows the Insurance Council’s submission of a strengthened draft code to ASIC on 22 October 2026. Earlier industry consultation had already pointed to a bigger role for the redrafted General Insurance Code of Practice, including stronger claims handling, transparency and accountability expectations. ASIC’s involvement does not mean the final form is settled, but it does move the reform process from industry drafting into closer regulatory examination.

For tradies, the practical issue is not the code’s wording in isolation. It is whether everyday insurance interactions become clearer when something goes wrong. A sole trader with stolen tools, a builder facing a liability allegation, or a small plumbing business lodging a storm-damage claim may all need timely explanations about what evidence is required, how a decision has been reached, and what complaint options exist if the outcome is disputed.

ASIC’s speech also placed the code review alongside broader concerns about insurers “getting the basics right”. The regulator referred to recent work on cash settlements for home claims, motor premium communication, pricing promises, dispute resolution and claims management firms. Some of those issues are consumer-focused, but the same themes matter in trade insurance: renewal documents, premium changes, excesses, exclusions and claim settlement calculations can all affect cash flow when a business is already under pressure.

There are important limits. The General Insurance Code does not replace the actual policy wording, and not every insurance product used by trade businesses is covered in the same way. Workers compensation, compulsory third party insurance, life insurance and health insurance sit outside the general insurance code framework, while many tradies also rely on contract terms and site requirements that go beyond insurance documents.

A useful response for trade operators is to treat the regulatory attention as a prompt for better record keeping and renewal discipline rather than a guarantee of easier claims. That means checking schedules against current work activities, keeping tool and equipment inventories up to date, saving key correspondence, and reviewing exclusions, limits and excesses before assuming a policy will respond. If the revised code ultimately lifts service standards, businesses with organised records and a clear understanding of their cover will be better placed to benefit.