The Federal Government needs to create a regulatory framework that is simpler, clearer and more efficient for consumers and businesses, says Parliamentary Secretary to the Treasurer Chris Pearce.

Speaking at the Insurance Council of Australia annual dinner last week, Mr Pearce said this new regulatory framework should reduce compliance costs.

Reflecting on the Financial Services Reform Act refinements package, Mr Pearce said the changes enable insurers to tailor product disclosure documents to provide consumers with simpler and more relevant information.

“It’s clear that excessive regulation – or worse, poorly designed regulation – detracts from productivity and increases costs for consumers and business. As a former businessman, I’m very well aware of the complexities involved in complying with an extensive array of corporate regulation.”

Mr Pearce says it is recognised that in some situations the exact dollar amounts of the costs and benefits of a general insurance product cannot be determined until an insurer has assessed the risk of a consumer and ascertained the required level of cover.

Based on this, the latest consultation paper seeks input on more flexibility related to dollar disclosure for general insurance products.

“Other disclosure issues being considered include whether oral disclosure in relation to financial services guides and statements of advice could be reduced in time-critical situations, such as telephone sales,” he said.