Choosi’s parent caught on misleading ads
Choosi’s parent company Hollard Financial Services (HFS) has agreed to change the way it promotes funeral insurance under the Real Insurance brand as a result of concerns raised by the Australian Securities and Investments Commission (ASIC).
ASIC was concerned that HFS’s advertising included insufficient information about premium increases; that prices quoted were not representative of the imagery used in advertising; and that some qualifications regarding the prices were inadequate.
Earlier this year, a group of financial advisers raised concerns about the way Hollard Financial Services promotes life insurance via its insurance comparison website Choosi.
However, Choosi’s managing director David Rees defended the website’s marketing strategy, claiming its approach was transparent and clearly disclosed.
ASIC’s concerns with respect to Real Insurance’s marketing of funeral cover were mostly around the possibility that some consumers might be mislead about these matters.
HFS agreed to include prominent disclosure that premiums increase with age; to disclose the key assumptions the price is based on; and use imagery that is consistent with the claims made in relation to price.
“HFS has engaged constructively with ASIC in relation to the concerns we raised,” deputy chairman Peter Kell said.
“We think the changes they are making to their advertising will significantly improve the way in which important features of this product are conveyed to consumers,” he added.
“We will continue to work to get commitment to similar standards of advertising across the funeral insurance industry.”
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