Summary
The Insurance Contracts Regulations 1985 set out detailed rules implementing the Insurance Contracts Act 1984, covering standard policy wordings for home and motor insurance, disclosure requirements, cooling-off periods, and claims handling procedures. They aim to standardise contracts and enhance consumer protection.
Reason
These regulations impose significant compliance costs on insurers, increasing premiums for consumers and reducing product innovation. Their prescriptive standards limit competition and consumer choice, with disproportionate impact on rural and remote communities where insurance is already scarce. Duplication with state regimes creates a compliance maze, while the unseen cost is the deadweight loss from resources diverted to bureaucracy rather than risk management, and the suppression of tailored market-driven solutions.