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Insurance Key Facts Sheet – Regulation Impact Statement – The Treasury

 On 19 November 2012, regulation was tabled in the Senate, which sets out requirements for insurers regarding the content, presentation and provision of a one-page Key Facts Sheet for home building and home contents insurance policies – the Insurance Contracts Amendment Regulation 2012 (No. 2). In the Regulation Impact Statement (RIS) the preferred option is likely to provide benefits for consumers in terms of improved access to key information and providing the most opportunities to compare similar insurance policies prior to entering into an insurance contract. As insurers are already required to provide a Key Facts Sheet for home building and home contents insurance policies under the Insurance Contracts Amendment Act 2012, costs are unlikely to be affected by imposing new requirements on the content and presentation of the Key Facts Sheet. The costs, incurred by the new requirements regarding when a Key Facts Sheet should be provided, are expected to be reduced through exemptions; and offset by reductions in potential liability issues for insurers. A RIS was prepared by the Treasury and assessed as adequate by the Office of Best Practice Regulation.