The Australian Securities and Investments Commission plans a five-year extension of rules that simplify obligations and reduce the regulatory burden when retail cover is bought “incidental” to business insurance.

The legislative instrument that exempts insurers and brokers from certain retail obligations was introduced in 2022 and is scheduled to end on August 16.

“ASIC has assessed that this instrument is generally operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework,” the regulator said. 

Incidental retail cover refers to insurance provided to a business that is a “minor, incidental and inseparable part” of an otherwise wholesale insurance product.

Comment on the proposed extension is due by June 16.