As a response to the unprecedented impact of the COVID-19 pandemic, the 2020 General Insurance Code of Practice (2020 Code) included new sections designed to provide increased protection for consumers experiencing vulnerability and financial hardship. Following significant consultation with the insurance industry, the new standards came into effect on 1 January 2021.

The standards require insurers to make sure that staff are appropriately trained to identify and support customers who may be vulnerable across a range of circumstances. 

Insurers must now provide information on their websites that details the support that is available to vulnerable clients, as well as publish policies around family violence and mental health. 

What is a vulnerable client?

The new standards state that vulnerability may arise from a range of factors, including age, disability, mental health conditions, family violence, language barriers and socio economic disadvantage.

Many call centre workers, especially in claims departments, know how to deal with obviously distressed clients, but it’s not always easy to identify vulnerability. 

“That’s probably the hardest part, to be honest,” says Kara McInnes, national claims service manager, CHU Underwriting Agencies, and member of ANZIIF’s General Insurance Faculty Advisory Board.

“It’s not black and white. Just because someone’s 80 years old doesn’t mean they’re vulnerable. This is where, especially in the claims environment, the consultants will heavily rely on their loss adjusters or their builders who are out on site to be their eyes and ears, because sometimes it’s not something you can pick up over the phone.

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