The Australian Finance Industry Association (AFIA) has enacted the second edition of its Insurance Premium Funding (IPF) Code of Practice, introducing updated requirements for providers and reinforcing industry-wide standards.
The revised code, which took effect recently, is the result of collaboration within the AFIA Insurance Premium Funding Advisory Group and is intended to align the sector with current market practices and regulatory expectations.
The new edition of the IPF Code of Practice is positioned as a framework for responsible conduct among insurance premium funding providers.
AFIA chief executive Diane Tate said the code’s implementation reflects the industry’s ongoing efforts to enhance governance and transparency, particularly as businesses and individuals navigate economic challenges.
“Adopting the IPF code demonstrates the commitment of an IPF provider to strong governance and clear and transparent practices,” she said.
She noted that the code is designed to ensure customers receive fair treatment and timely information, supporting their ability to manage insurance expenses without disrupting cash flow.
“Insurance premium funding plays a vital role in helping people and businesses manage the cost of insurance without compromising cash flow. The updated IPF code ensures the sector continues to meet that need with integrity and transparency,” Tate said.
Several changes have been introduced in the second edition of the code, each aimed at improving the customer experience and reinforcing trust in the sector. These updates include:
The code is supported by a number of prominent insurance premium funding companies, including Arteva Funding, BOQ Finance, Elantis, Hunter Premium Funding, IQumulate, and QPR Premium Funding.
ClearMatch Originate Pty Ltd has recently been accredited as a code-compliant member, and AFIA has indicated that more providers are in the process of seeking accreditation.
Vicki Mullen, chair of the IPF Code Compliance Committee, said the committee will continue its oversight under the new edition, with a focus on ensuring that members act with honesty and fairness in their dealings with customers.
“The code places a high priority on service, competitiveness, and customer service. Code-compliant members commit to always acting with honesty and integrity and treating customers fairly and reasonably,” she said.
According to AFIA, its members facilitated $8.8 billion in insurance premium funding during 2024, providing financial flexibility to small and medium-sized enterprises as well as individual policyholders.
The code, which was first introduced in October 2022, is seen as a key element in supporting business continuity and risk management across the sector.
In a separate development, the General Insurance Code Governance Committee (CGC) has announced the appointment of Dallas Booth as its industry representative, effective July 2025.
The appointment coincides with a broader industry initiative to revise the General Insurance Code of Practice.
The Insurance Council of Australia (ICA) is leading efforts to update the code, with the goal of making it legally enforceable and more accessible to policyholders.
The revised code will incorporate recommendations from an independent review and the 2022 Parliamentary Flood Inquiry.
