Treasury is reviewing exemptions from add-on insurance rules introduced after the Hayne royal commission to prevent high-pressure sales tactics causing consumer harm. 

The laws require a four-day pause between the sale of a primary product and related insurance, but some classes were excluded due to their consumer value. 

The exemptions, under Australian Securities and Investments Commission regulations, are due to expire on October 5 next year. 

“Treasury is examining whether they should continue, either in whole or in part, as well as whether or not any new class exemptions should be granted,” a call for feedback says. 

Considerations include evidence of consumer benefit, relative value compared with products in the standalone market, and risks of non-insurance or underinsurance. 

The exemptions, which took effect in 2021, apply to 10 add-on classes including comprehensive motor, compulsory third party motor, home and contents, travel, and business- and superannuation-related products. 

Submissions close on January 30. More information is available here.