The Morrison Government is continuing to enhance consumer understanding and access to information by today releasing a discussion paper on improving disclosure in the general insurance sector.
This discussion paper follows from recommendations made in the Senate Economics References Committee report into the general insurance industry, and seeks views on the issues and objectives behind component pricing, disclosure of year-on-year premiums, standard cover and definitions in insurance contracts, and the Key Facts Sheet.
Improving disclosure practices of the insurance industry will enable consumers to be informed and ensure the market remains fair and competitive. Lack of transparency or poor disclosure practices limits choice and makes it harder for consumers to make informed and appropriate decisions on insurance coverage.
The Government recognises the efforts being made by the general insurance industry to improve disclosure practices and encourages the continuation of this work.
The discussion paper will assist in defining proposals to enable the Government to use regulatory tools to achieve recommendations from the Senate report and identify actions that the industry can take.
In developing a model for improved disclosure, in addition to considering submissions from stakeholders, the Government will also have regard to any recommendations relating to disclosure from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the recommendations in the First Interim Report of the Australian Competition and Consumer Commission's Northern Australia Insurance Inquiry.
Submissions to the discussion paper close on 28 February 2019. Stakeholders are invited to provide their feedback to firstname.lastname@example.org.