0.25 CIP Points
Four days to decide: is the deferred sales model still doing its job?
The Australian government has extended exemptions from the deferred sales model to 2031. With newer product and distribution duties now in force, what protection does the four-day pause still add today? By Anna Lopata - ANZIIF senior writer The decision...
05 Oct 2026
4 mins read
Summary
- The DSM inserts a four-day pause into certain add-on insurance sales to give customers time to consider the offer.
- Existing class exemptions have been extended to 5 October 2031; the DSM itself remains in place.
- The exemptions cover specified motor and vessel, home, travel, transport, business and superannuation-related products, among others.
- Industry bodies say immediate cover can prevent gaps in protection; consumer advocates remain concerned about pressure selling.
- The next question is whether the DSM adds value alongside design and distribution obligations (DDO) and other sales protections.
The Australian government has extended exemptions from the deferred sales model to 2031. With newer product and distribution duties now in force, what protection does the four-day pause still add today?
By Anna Lopata – ANZIIF senior writer
The decision to extend exemptions from Australia’s deferred sales model (DSM) gives insurers and brokers five more years of certainty about selling specified add-on insurance at the point of purchase. It also renews a question the exemptions review did not resolve: how much distinct consumer protection does the four-day pause now provide?
Regulations registered in September extend existing class exemptions to 5 October 2031, ahead of their scheduled expiry. Treasury consulted on the exemptions, rather than evaluating the entire DSM. Submissions agree consumers need protection but differ on how to provide it.
Why introduce a pause?
The DSM followed findings about poor-value add-on insurance, high commissions and pressure selling, particularly in motor vehicle dealerships. It separates the sale of the principal product or service from the insurance decision, giving a customer time to assess the cover and compare alternatives.
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