AUSTRALIA – Insurers??? comms law goes digital

Amendments to the IC Act will allow insurers to communicate with their customers electronically through platforms such as email, internet websites, or via emerging platforms such as the digital mailbox services provided by companies like Digital Post Australia and Australia Post, potentially saving time and cost, and increasing the ease of communicating with their customers via the customers’ preferred means. 

From December 28, 2013 notices, information, documents and statements, which must be provided to the insured under the Insurance Contracts (IC) Act, may be issued by electronic means. However, insurers will need to ensure that their chosen methods for electronic communication are capable of meeting the Electronic Transactions (ET) Act’s requirements, and that their customers have consented to receiving those communications electronically. The ET Act requires that certain conditions are met before information can be sent electronically. Notably, the changes allowing digital communications do not apply to certain insurance contracts, which are not covered by the IC Act, such as private health insurance, worker’s compensation and motor vehicle injury compensation.