Insurers can do more to help consumers buy the right cover without breaching laws on giving advice, according to Australian Securities and Investments Commission (ASIC) Deputy Chairman Peter Kell.

Companies are being overly conservative on the help they give, he told last week’s Insurance Council of Australia regulatory update. “We do need to work on helping people get better information of what needs to be covered, particularly in home insurance.”

There is plenty of “low hanging fruit” available to insurers, he says.

Insurers argue regulations about providing personal advice restrict what their call centre staff can say, but Mr Kell says the “no advice” or “factual advice only” model may leave consumers underinsured.

There is scope for giving consumers access to tools such as online calculators, but ASIC research of telephone sales shows most people who ring call centres are not referred to what is available.

Consumers also need more help to understand the scope of their policies. Since most call to ask about price, this limits the amount of information they seek on policy terms.

Mr Kell says ASIC is aware of insurers’ concerns that the comparison website it is developing for north Queensland consumers will not provide a balance between price and policy features.

The tool, due to go live by the end of this month, will give indicative prices for various types of home and contents cover and a clear explanation of the site’s limitations, he says.

“Consumers will be warned not to solely rely on the comparison to make a decision about selecting home insurance and will be encouraged to contact relevant insurers directly about their specific circumstances before making a decision.”

Asked later by insuranceNEWS.com.au if all relevant insurers are participating, Mr Kell said he will answer the question closer to March 31.