The council also urged the government to avoid regulatory duplication between the ACL and existing financial legislation.

The Insurance Council of Australia has expressed support for maintaining a technology-neutral Australian Consumer Law (ACL) framework to accommodate the rapid growth of artificial intelligence (AI) applications. 

The council endorsed the government’s Voluntary AI Safety Standard and proposed mandatory safeguards for high-risk AI applications.

Representing 89% of private sector general insurers in Australia, the council emphasised the importance of a balanced regulatory approach in its submission on the government’s Review of AI and the ACL.

The general insurance sector, a key contributor to Australia’s economy, generates $42.96b (A$66b) in gross written premiums annually and pays out $25.65b (A$39.4b) in claims each year. 

The council urged the government to avoid regulatory duplication, particularly between the ACL and existing financial legislation such as the Australian Securities and Investments Commission Act and the Corporations Act.

Whilst acknowledging the cautious adoption of AI in financial services, the council supported regulatory guidance to clarify how the ACL applies to AI-enabled goods and services. 

This, it argued, would mitigate potential risks without the unintended consequences of legislative changes.

($1.00 = A$1.54)