The Australian Securities and Investments Commission is to focus its surveillance efforts on “add-on insurance” that is marketed inappropriately to consumers.

Its strategic outlook to 2016 – released this morning – says the regulator is concerned about poor retail product design, disclosure and marketing, and how this may disadvantage consumers, particularly at retirement.

Add-on insurance is cover sold with but not as part of a policy. Examples are separate insurance cover for electronic equipment kept in the home, credit insurance, breakdown cover and identity theft protection.

“Complex product design can increase the likelihood that retail investors and financial consumers may not understand the risks associated with products,” the report says.

The commission also flags the issue of digital disruption, warning traditional business models in financial services are changing rapidly.

Technology-driven financial innovation is altering how financial markets interact, including with investors, and this brings challenges around cyber resilience.

Key risks this financial year are innovation-driven complexity, globalisation, the conduct of financial services participants and the expectations gap, or whether expectations and uncertainty can undermine confidence and behaviour.