Treasury’s revised draft laws for the Consumer Data Right (CDR) regime have been labelled “still too broad” to sufficiently protect insurers’ underwriting data.

The Insurance Council of Australia (ICA) says the proposed legislation should contain a general exclusion of intellectual property, coupled with specific exceptions and anti-avoidance provisions to address potential loopholes.

“In this context, we reiterate our view that underwriting data used by insurers is a source of intellectual property and a commercial asset,” it says in a submission to Treasury.

“It is essential that any requirement to release data does not compromise the underwriting models used by individual insurers to assess and price risk.”

The CDR aims to give Australians greater control over their data. It will be introduced next year, first in the banking sector, followed by energy and telecommunications.

ICA supports the Treasury proposal specifying minimum consultation requirements prior to a sector being designated or rules being made.

It suggests a minimum 60-day public consultation is appropriate because of the issues’ complexity and the significance of the changes.

“This would allow due consideration [of] how the CDR regime could apply to general insurance and other sectors, and achieve the stated aims of improved consumer choice and convenience.”

In a separate submission to the Australian Competition and Consumer Commission, ICA says “careful consideration” must be part of the rules framework consultation when the CDR extends to the insurance sector. The consumer watchdog is seeking feedback on the approach it takes in setting rules for the CDR.

“Any extension of the rules framework to the general insurance sector will require careful consideration of how the CDR regime achieves its stated aims of improved consumer choice and convenience,” ICA says.