New premium funding Code of Practice comes into effect with added customer protections

The Australian Finance Industry Association’s newly launched Insurance Premium Funding (IPF) Code of Practice has officially come into effect with additional customer-centric protections.  

Coming into effect on 1 October 2022, the IPF Code of Practice provides a number of protections to the customers of premium funders that an independent Compliance Committee has determined to be Code-compliant. 

In response to recommendations from the Financial Services Royal Commission, the Code lists nine key commitments to customers, which include delivering a high standard of customer service, providing clear information on products, and working fairly and in good faith. 

Additionally, the Code requires premium funders to use standardised disclosures and metrics to enable customers to easily compare features and pricing and provides access to various internal and external dispute resolutions, including taking their complaint to AFCA in the event of an unsatisfactory resolution.  

Code-compliant premium funders are also required to work with customers in good faith to provide assistance for financial hardship and promote continuous improvement of customer service and professionalism across the premium funding industry.  

Hunter Premium Funding and IQumulate are the first premium funders to be accredited as Code Complaint Members by the IPF Code Compliance Committee, with other premium funders expected to follow in the coming months.  

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