Exposure draft legislation – Deferred sales model class exemption extension

The Government has released draft regulations to extend the exemption of certain classes of add‐on insurance products from the Deferred Sales Model regime. Deferred Sales Model regime for add‐on insurance creates a four‐day deferral period after the sale of a product for consumers to make informed decisions about whether they want add‐on insurance as well. This deferral period or ‘pause’ allows and encourages consumers to consider the merits of the insurance offered and to compare it with alternative products. Some add‐on insurance products are exempt from the deferred sales model. These products represent a high level of consumer value or are mandatory including: - add‐on comprehensive motor vehicle or vessel insurance products - add‐on compulsory third party motor vehicle insurance products - add‐on home and contents insurance products - add‐on home building insurance products Currently the exemptions will expire on 5 October 2026. The draft regulations will extend the operation of the exemptions until 5 October 2031. Consultation on the draft regulations will close on Friday 7 August.