Its new Business Replacement Rules and Reinstatement policy came into effect on July 1 and there has been considerable comment since Good Returns ran a story on the changes last week.

ISI chief executive Vance Arkinstall says the new standard replaces one that was introduced more than a decade ago.

He  acknowledges that the new Standard has raised some concerns, most of it focused on the new consumer information brochure.

"As a result ISI will engage in consultation with adviser group representatives to identify immediate improvements that can be made."

ISI Chairman Sean Carroll says "we are committed to raising industry standards around the level of consumer disclosure, and we are equally committed to working with stakeholders to make sure the needs of consumers, advisers and the industry are met."

"That is why we will consider the issues raised by adviser groups and, where appropriate, address them."

Arkisntall says the key purpose of the new standard is to ensure people know what they may be giving up when they replace a policy with a new one.

"There have been a number of unfortunate cases where benefits under a replaced policy would have triggered a successful claim, but the new one did not. People have the right to replace their policies, but we want to be sure they are basing those decisions on all the facts."

Arkinstall believes the updated ISI policy addresses this issue by strengthening the consumer disclosure guidelines that member companies follow and creating a process that supports the adviser should questions arise in the future.

"Our only objective has been to create an environment where the consumer receives all the information they need to make an informed decision," Arkinstall says.

"Our commitment in this regard remains unchanged, and we are keen to work with other industry groups to review the current policy and make improvements. As a result we will be consulting with industry representative groups and interested parties to identify where changes could be made."