The Australian Securities and Investments Commission (ASIC) says it has remade a class order in relation to product disclosure statement (PDS) requirements where a general insurance product quote is given.

ASIC announced the decision last week after a consultation and it comes ahead of the expiry on April 1 of class order CO 11/842. Legislative instruments, such as class orders, are repealed automatically, or “sunset”, after 10 years unless action is taken to preserve them.

The regulator says the new instrument, which will expire on March 1 2027, continues to provide relief to address the practical difficulties for general insurers 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.

“The relief remains substantively the same, with minor changes to give greater clarity and reflect current drafting practice.”

The ASIC consultation received just one submission, from the Insurance Council of Australia.

ICA says in the submission it supports the remaking of the class order but would have preferred to have a 10-year “sunsetting” period.

“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 provision of a PDS until after the telephone call,” ICA said.

“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.”

ICA says its research indicates around 20% of consumers engage with insurers over the phone before making a purchase when shopping around.