New regulations promoting short and simple product disclosure statements are in place, but do not initially apply to general insurance products.

The Federal Government last week announced the new regulations which apply to margin loans, superannuation and simple managed investment schemes. They are effective immediately.

Disclosure statements will now comprise around eight pages, down from a common length of between 50-100 pages.

Finance Minister Lindsay Tanner says the regulations will make it “easier for businesses to use alternative methods such as the internet for disclosing large amounts of detailed product information, and will also reduce costs for industry”.

The insurance industry generally supports shorter disclosure documents for general insurance products, which often exceed 100 pages. It’s widely acknowledged that most policyholders don’t read them.