The Insurance Council of Australia (ICA) has called for reforms to remove legislative inconsistencies that act as a barrier to electronic communications.

Submissions today have closed on a Federal Attorney-General’s Department consultation on how the Electronic Transactions Act (ETA) regulates e-commerce in Australia.

ICA says disclosure requirements under the Insurance Contracts Act have to be sent in line with the ETA, but those under the Corporations Act don’t have the same requirement.

“This creates inconsistencies between the two pieces of legislation in respect of electronic communications,” it says. “Harmonisation should be undertaken to ensure relevant provisions of the ETA are consistent with other laws.”

The submission says an ETA consent requirement is out of step with the Corporations Act arrangements, and the Australian Securities and Investments Commission has encouraged financial services providers to use electronic forms of disclosure.

“The requirement to obtain consent adds friction to the customer experience and results in more paper-based communications than would otherwise be the case for general insurers,” it says. “The regulatory framework should allow electronic communication as a default by eliminating the need to obtain consent.”

The Attorney-General’s Department says “the consultation is designed to start an ongoing discussion on the ETA, including any challenges with its application or any confusion experienced by those interacting in the digital economy”.