The direct selling practices of major life/risk insurer ClearView are expected to be amongst the first issues examined by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services when it resumes its hearings in Melbourne this morning.
The Royal Commission has confirmed that the first witness called to give evidence in its sixth round of hearings dealing with superannuation will be ClearView’s chief actuary and risk officer, Greg Martin.
ClearView is currently undertaking a remediation process involving refunding $1.5 million to 16,000 consumers following issues raised by the Australian Securities and Investments Commission (ASIC) in February which led to ClearView subsequently ending its direct insurance business.
An ASIC review of ClearView’s sales calls found it used unfair and high pressure sales practices when selling consumers life insurance policies by phone with the sales made directly to consumers, without personal financial advice.
The Royal Commission’s new round of hearings will cover both life/risk and general insurance, with other companies listed to appear including, AMP, CommInsure, Freedom Insure and TAL. As well, the Royal Commission is expected to traverse the issue of group insurance when it examines industry superannuation fund, REST.
ClearView is not the only major insurer to have utilised the direct insurer channel, with questions expected to be asked of at least two of the other major life/risk insurers.
