ASIC revises 'sunsetting' class order on general insurance quotes

The Australian Securities and Investments Commission (ASIC) has revised the class order product disclosure statement (PDS) requirements for quotes provided for a general insurance product.

The new instrument, “ASIC Corporations (PDS Requirements for General Insurance Quotes) Instrument 2022/66,” continues to provide relief to address general insurers' difficulties in giving a PDS to a client via phone call, including facilitating insurance quotes given to consumers. It also enables consumers to shop around and compare general insurance products.

With the prior order ‘sunsetting,’ ASIC decided to extend the class order from April 1, 2022, for a further five years, with the relief remaining substantially the same, with minor changes to provide further clarity and reflect the current drafting practice.

Read more: ASIC to work with regtechs to address poor market disclosure

According to ASIC, during a telephone call but before the offer is made, the ASIC-regulated person must verbally communicate the following information to the client in a clear, concise, and effective manner:

• If the insurance cover under the product is subject to exclusions or limitations – that the cover is subject to exclusions and limitations (as applicable) and that information about the exclusions and limitations (as applicable) is contained in a PDS for the product, and
• The level of insurance cover under the product may differ from the level of insurance cover under other general insurance products.

The remade instrument follows ASIC's public consultation through Consultation Paper 349 Remaking ASIC class order on PDS requirements where a general insurance quote is given: [CO 11/842] (CP 349). You may see the updated instrument on the ASIC website.