Federal Treasury officials will reconsider practical issues around implementing “key facts” sheets after meeting with insurance representatives in Canberra last week.

A roundtable hearing between insurance, consumer and Treasury representatives discussed how policyholders will be informed about coverage under the Insurance Contracts Amendment Bill.

Insurers have been concerned that the bill would require policyholders to be told about flood cover when taking out and renewing their policy, extending, varying or reinstating the cover.

Committee Chairman Julie Owens noted that a consumer would need a new key facts sheet if varying their policy by adding a piece of jewellery. Treasury’s GM Retail Investor Division Sue Vroombout agreed this is the case, and said Treasury is looking at how it might be changed.

Insurance industry representatives also raised concerns about when the sheets will be provided.

Insurance Council of Australia GM Regulatory Policy John Anning said the one-page summaries should be provided as the same time as the product disclosure statement.

“There is a view out there that a key facts sheet would be a boon to some people who do not read anything,” he said. “The Insurance Council’s perspective on it is that we would not want people making decisions about their insurance solely on the basis of a one-page summary.”

National Insurance Brokers Association (NIBA) representative Mark Radford said brokers are concerned that some consumers could be left exposed.

“If everyone is trying to wait until the key facts sheet has been delivered then, in certain urgent cases, people might not have the insurance they would otherwise get as part of the process. That is a concern that needs to be focused on.”

He said insurance products are complex, very hard to summarise and most people are not inclined to read their policies.

NIBA supports the provision of professional advice to help people understand the policy document and believes “the KFS should not be seen as a panacea to everything”.

The Government released the draft bill for public comment in December and parliament is expected to pass the legislation in this session, with the regulations made in the middle of the year.

Ms Vroombout said Treasury plans to release a discussion paper on the regulations for providing key facts sheets.