The Insurance Council of Australia (ICA) has asked the Government to amend the Insurance Contracts Act 1984 so insurers can digitally deliver product disclosure.

In a submission to Treasury, ICA suggests granting the Australian Securities and Investments Commission (ASIC) relief power over the Act, which is currently outside its jurisdiction.

Last year ASIC amended the Corporations Act 2001 so businesses could provide product disclosure statements electronically without the need for client consent.

However, insurers did not benefit from these changes due to wording that remains in the Insurance Contracts Act.

The requirement to “give” relevant information and notices has meant hard-copy disclosure remains the default.

ICA spokesman Campbell Fuller told insuranceNEWS.com.au electronic product disclosure is among the recommendations made by ICA’s Effective Disclosure Taskforce last October.

“Electronic disclosure can reach customers more quickly and conveniently than traditional mail, and may allow often long and complex documents to be presented in more targeted and engaging forms,” he said.

“Whereas other financial services providers can use electronic communication as the default, insurers are still legally required to send hard copies of most documents through the post, unless they have explicit consent from the policyholder.”

He says ICA does not see a compelling reason for insurers and other financial services providers to face a different regulatory regime on electronic disclosure.

Granting ASIC relief powers would allow it to amend the Insurance Contracts Act without the need for legislative changes.