What the Insurance Code Rewrite Means for Shop Claims

The most important point is timing. The revised code still needs to be considered by ASIC, and a transition period is expected before any approved version begins applying to new and renewed policies. That means retailers should not assume current claims will be handled under the new framework. Existing policy wording, insurer obligations and dispute processes remain the starting point.

Even so, the direction of travel matters. The proposed code is intended to lift standards around transparency, accountability and claims handling. It would also make key code obligations contractually enforceable for the first time, subject to the final approved form. That could give customers stronger avenues to hold insurers to service commitments, although the practical effect will depend on ASIC’s approval, implementation details and how insurers embed the changes operationally.

The development lands against a difficult complaints backdrop. AFCA’s 2025-26 annual review recorded the highest overall complaint volume since its establishment, while general insurance complaints also reached a new high. AFCA’s small business data also showed continued complaints involving insurers and insurance brokers, including matters connected with business property, business interruption and service. For retailers, those are not abstract categories; they are the kinds of issues that arise after fire, storm, theft, equipment damage or a prolonged interruption to trading.

There is also some caution. Consumer groups have argued the submitted code may still fall short in areas such as claims handling and expert evidence, and have called for further scrutiny before approval. That debate is worth following because retail claims often rely on loss assessors, builders, repairers, stock valuation evidence and business interruption calculations. Small differences in process can materially affect how quickly a claim is understood and resolved.

For shop owners reviewing cover, the practical lesson is to treat governance reform and policy review as connected but separate. A stronger code may improve standards over time, but it will not replace careful reading of policy documents, sums insured, exclusions, sub-limits and evidence requirements. Clear records of stock, fit-out, turnover, maintenance, incident response and correspondence can still make a major difference if claim disputes emerge.

The code process should ultimately be judged by what changes for customers during stressful claims, not simply by the wording submitted to the regulator. For Australian retailers, the immediate value is a reminder to keep insurance administration current, document risk controls and understand how a policy is meant to respond before a loss occurs.