AFIA release new Insurance Premium Funding Code of Practice

The Australian Finance Industry Association (AFIA) has launched an Insurance Premium Funding Code of Practice, coming into effect on 1 October 2022.  

The Code aims to empower customers by ensuring greater clarity and higher standards of practice around premium funding products.   

Under the Code, subscribers will commit to standardised metrics for disclosing features and costs, which enable customers to compare various offerings more easily.  

In requiring premium funders to disclose their remuneration arrangements, the Code aims to ensure customers are clearly informed of any remuneration arrangements with brokers, in line with the findings and recommendations made by the Financial Services Royal Commission. 

The Code also provides customers with access to internal and external dispute resolutions, including taking their complaint to AFCA in the event of an unsatisfactory resolution.   

An independent IPF Code Compliance Committee consisting of Vicki Mullen, formerly an Ombudsman at AFCA, Dallas Booth, former CEO of NIBA, and Edward Martin, legal practitioner, will be responsible for administering the Code and investigating its compliance.  

For more information and to read the full Insurance Premium Funding Code of Practice, click here.