Insurers are covered by privacy laws and financial services regulations when dealing with children and any changes to the rules protecting minors must be proportionate, the Insurance Council of Australia has told the information commissioner.

The Office of the Australian Information Commissioner has sought feedback as it develops a Children’s Online Privacy Code to specify how internet services accessed by young people must comply with Australian Privacy Principles. It may add requirements to the principles.

ICA has told the commissioner insurers are governed by an extensive financial services regulatory framework that oversees how they market products and communicate with customers.

It says the OAIC should consider exempting insurance from the new code, or it should clearly identify the risk being addressed and ensure there is no duplication or inconsistency with existing requirements.

ICA also raises the issue of chatbots on insurer websites, and says introducing age verification or onerous consent requirements could stop minors accessing cover.

Insurers sometimes deal directly with children, because they will generally offer coverage to anyone with a financial interest in an insured asset, regardless of age, ICA says. This can include motor, compulsory third party, travel and contents insurance. Children can also be workers’ compensation claimants.

However, it is unlikely a child aged under 13 would deal directly with a general insurer, it says.

The OAIC says the new code will be in place by December 10 next year.