The federal government’s latest advice reforms, including a plan to let insurers give “simple” guidance, should lead to better consumer outcomes, according to the Insurance Council of Australia.

ICA says it backs the second tranche of changes unveiled last week by Assistant Treasurer Stephen Jones, who gave more details as the government prepares draft legislation for consultation.

“We ... look forward to working with the government to better understand the implications for general insurance, particularly [relating] to the new class of adviser,” ICA CEO Andrew Hall said.

“This is a potentially critical reform as we work through the industry’s response to the parliamentary flood inquiry, and we are keen to ensure that the advice settings are fit for purpose to allow us to continue supporting Australians when they need us most.”

ICA says the reforms’ implications will differ depending on insurers’ advice models and business decisions around implementation.

“If implemented carefully, the new class of adviser creates opportunities for insurers to provide simple advice to customers about their policies, such as choosing the level of cover. While bespoke advice from qualified financial advisers will continue to be important for many Australians, tranche two of the government’s ... reforms provides a good opportunity to address unmet demand for financial advice from individuals with less complex financial circumstances.”

Mr Hall says the industry has always been supportive of Australians being able to receive the advice they need to protect their most important assets.

“Insurance products can be complicated and, given the systemically important nature of the services we provide, appropriate and targeted advice can lead to better outcomes for consumers.”