The new legislative instrument extends the relief provided to general insurers when giving quotes over the phone.
ASIC has confirmed it has remade its class order regarding product disclosure statement requirements for general insurers, previously due to expire on 1 April.
The corporate regulator said that the new instrument, ASIC Corporations (PDS Requirements for General Insurance Quotes) Instrument 2022/66, would continue to provide relief to address the practical difficulties in giving a PDS to a consumer during a phone call.
“It facilitates insurance quotes being given to consumers over the phone, enabling consumers to shop around and compare general insurance products,” ASIC said in a statement on Monday (21 February).
“The relief remains substantively the same, with minor changes to give greater clarity and reflect current drafting practice.”
The “sunsetting” class order was remade by ASIC for a further five years while the new instrument is now set to expire on 1 March 2027.
ASIC received a single submission from the Insurance Council of Australia in response to its public consultation launched in November that supported remaking the instrument.
“The relief enables insurers to interact effectively with consumers by giving greater certainty that the quote stage of the sales process can be completed during a telephone call without a provision of a PDS until after the telephone call,” the Insurance Council said in its submission.
“Without the relief, customers would face barriers to seeking insurance quotes over the phone, which is likely to hinder consumers finding products most suited to their circumstances.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
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