Treasury Reforms to the sale of add-on insurance products – Proposal Paper

We support the Government’s commitment to implement Recommendation 4.3 of the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

While we broadly support the intent of the proposed model and the Government’s swift implementation, we hold serious concerns about elements of the model. Our primary concerns relate to:

• The trigger for the deferral period being a ‘financial commitment’
• The one-day ‘customer initiated’ completion of sale
• The duration of the deferral period
• Exemptions
• Tiered design