The Insurance Council of Australia has urged Treasury to include in its draft advice bill a provision in relation to statement of advice exemption for general insurance products.

ICA made the request in a submission to the Treasury Laws Amendments Bill 2025 consultation, which closed on Friday.

“Currently, general insurance products, excluding consumer credit insurance, are exempt from the need to provide clients with a statement of advice for particular advice, pursuant to regulation 7.7.10AE of the Corporations Regulations 2001,” the submission says.

“However, we note the existing exemption for general insurance products no longer matches with the provision in the proposed redrafted legislation.

“As these regulations are long-standing, we strongly encourage Treasury to incorporate the exemption into the redrafted provisions of the legislation under the new proposed s946BA(1) ... alongside the exemption for basic banking products, rather than maintain it in the regulations.”

ICA says incorporating the exemption would align the proposed reforms to recommendation 24 from the Australian Law Reform Commission’s final report, Confronting Complexity: Reforming Corporations and Financial Services Legislation.