Australian regulator seeks feedback on add-on insurance sales model

It pushes for a four-day pause for a principal product sale and add-on sale.

The Australian Securities & Investments Commission (ASIC) is seeking stakeholder feedback on proposals for a guide and prescribed customer information for the forthcoming deferred sales model for add-on insurance.

The deferred sales model proposes a four-day pause between the sale of a principal product or service and the sale of an add-on insurance product. It was recommended by the Financial Services Royal Commission and has been implemented to the ASIC Act 2001, to commence on 5 October.

ASIC is inviting feedback on the draft regulatory guide which explains the scope of the deferred sales model, the obligations on add-on insurance providers, and ASIC’s power to grant an individual exemption.

It also seeks feedback on the proposal for the content, form and communication that must be given to customers to start the deferral period.

Feedback will be accepted until 23 April.