On Mar. 20, 2025, AST AFIA issued revised Insurance premium funding code of practice to align with modern industry practices, maintain a customer-first approach.
According to AFIA CEO, the Code sets a high industry benchmark, reinforcing the commitment to put customers first and enhance transparency in the IPF sector.
Being a signatory to Code indicates dedication to professionalism and high standards, ensuring customers undergo fair treatment, transparent pricing, clear communication.
The updated Code introduces several customer-focused improvements; it uses clear. simplified language for better understanding as well as IPF products comparison.
Includes transparent remuneration guidelines to promote accountability and trust.
Enhances customer support with better complaints handling and hardship assistance.
Current IPF Code will remain in effect until the new version launches on Jul. 1, 2025.
On Oct. 4, AST AFIA launched insurance premium funding code.
AST AFIA launched the Insurance Premium Funding Code, that provides additional protections for all consumers seeking insurance premium funding within Australia.
Document dated Oct. 4, 2022 and was received on Oct. 28 due to a new feed.
Funding Code
AST AIFA and its Insurance Premium Funding (IPF) members have developed the IPF Code of Practice (Code) after undertaking extensive consultation with stakeholders.
The customer-centric Code supports consumer and business customers by enabling them to compare features and pricing of IPF products, using disclosures and metrics
Plus, ensuring high standards of practice in design and distribution of IPF products.
Supporting access to insurance and finance via a competitive and innovative market.
The Code’s requires signatories to deliver clear disclosures to enable better comparison of IPF product features and costs, with both internal and external dispute resolution.
It will also provide financial hardship assistance, and promote continuous improvement of customer service, along with a culture of professionalism within the IPF industry.
The IPF Code of Practice also works alongside the updated Insurance brokers code of practice, as has been published by the National Insurance Brokers Association (NIBA).
In particular this will ensure the management of conflicts of interest and the disclosure of remuneration or other benefits an intermediary may receive in sales of IPF products.
AST AFIA believes an independent Compliance Committee is fundamental to the Code.
IPF Code Compliance Committee is responsible for managing an accreditation process, and administering the code, including monitoring compliance and applying penalties.
Comment
AST AFIA CEO, Diane Tate commented it is an important milestone as the Financial Services Royal Commission confirmed it is not just what firms do, it is how they do it.
The new IPF Code of Practice is an example of where the finance industry proactively adopts industry standards that go above and beyond what is required by the law.
Effectiveness
The Code comes into effect on Oct. 1, 2022.
Apr. 2023 Code Progress
On Apr. 20, 2023, AST AFIA discussed progress regarding the introduction of Insurance premium funding code of practice above; said that it came into effect on Oct. 1, 2022.
Insurance Premium Funding (IPF) code compliance committee has accredited two firms as code compliant members, and it anticipates further applications for accreditation.
Committee is engaging with IPF members on path to accreditation to support them.
All IPF members remain committed to being accredited as code compliant members as soon as practicable; AFIA will publicize further accreditations as soon as they occur.
Dec. 2023 AST AFIA on Additional Progress
On Dec. 15, 2023, AST AFIA commented further on progress made during 2023 with respect to Insurance premium funding code of practice above, on new accreditations.
It discussed industry’s ongoing commitment to high standards and professionalism.
Insurance Premium Funding Code Compliance Committee looks forward to considering more accreditation applications, and undertaking code compliance monitoring duties.
Mar. 2025 Revised Code Released
On Mar. 20, 2025, AST AFIA issued revised Insurance premium funding code of practice to align with modern industry practices, maintain a customer-first approach.
According to AFIA CEO, the Code sets a high industry benchmark, reinforcing the commitment to put customers first and enhance transparency in the IPF sector.
Being a signatory to Code indicates dedication to professionalism and high standards, ensuring customers undergo fair treatment, transparent pricing, clear communication.
The updated Code introduces several customer-focused improvements; it uses clear. simplified language for better understanding as well as IPF products comparison.
Includes transparent remuneration guidelines to promote accountability and trust.
Enhances customer support with better complaints handling and hardship assistance.
Current IPF Code will remain in effect until the new version launches on Jul. 1, 2025.
