ASIC bans cold call life sales

The Australian Securities and Investments Commission (ASIC) has announced a ban on unsolicited cold call telephone calls of direct life insurance and consumer credit insurance.

The regulator said the ban was intended to address poor sales practices that had led to unfair consumer outcomes and would take effect from 13 January, net year.

It said the ban was consistent with recommendations made by the Financial Services Royal Commission and provided protections to consumers that complement broader legislative reform by the Government.

Related News:

Announcing the ban, ASIC Commissioner, Sean Hughes said the regulator would intervene to stop practices that led to poor consumer outcomes and destroy trust in the financial system.

“This action draws a clear line in the sand. From January firms will no longer be able to call consumers out of the blue and use sophisticated sales tactics to pressure people into buying life insurance and CCI products,” he said.

ASIC said the ban complemented enforcement action ASIC had undertaken for past poor sales conduct by insurers and noted that, last week, CommInsure was fined $700,000 after pleading guilty to unlawful unsolicited telephone sales of life insurance.

ASIC has also commenced civil penalty proceedings against Select AFSL Pty Ltd relating to telephone sales of life and accidental injury insurance.

Recommended for you




In retrospect, this family probably would have been delighted to receive a call from anybody about getting proper life insurance cover a year ago. Funny thing, ASIC & Commissioner Haynes isn’t offering to donate to this family’s “go fund me” page, which is a small effort towards assisting this family suffering tragic circumstances.

Perth father of two Matt Don snaps neck while clearing trees on Perth Hills property

Jordan Cutts and Sarah Steger The West Australian Saturday, 30 November 2019

A single moment can change the course of one’s life forever.
It is a haunting thought. But for one young Perth man, it’s become his reality.
Last Sunday Matt Don was clearing trees on his block of land in the Perth Hills — work he’s done countless times before — when a log got stuck on the ground and swung back.
Crying out as he caught it, the 32-year-old fell backwards, snapping his neck the second he hit the ground.
Now, the father of two is facing life as a quadriplegic, trapped in a body he can no longer move from the neck down.
“He knew straight away. He told me straight away, that it’s done, he’s not going to walk again,” Mr Don’s wife, Kirsty Mulholland, said.
Her father-in-law, Mr Don’s dad, was there when the freak accident happened.
“They just couldn’t understand how it had happened because they’re both really safe, cautious people,” Ms Mulholland told 7NEWS Perth.
Currently, Mr Don is in the intensive care unit at Royal Perth Hospital.
The economist suffered a shattered C4 vertebrae and a severely damaged spinal cord — “a catastrophic injury with heartbreaking impact”, Ms Mulholland said.
It is hoped when he is well enough that he will be moved to the hospital’s spinal ward.
“Matt is a loving husband, a fun and devoted father ... and lives an extremely active lifestyle,” Ms Mulholland said.
“Despite what he is battling himself, nothing concerns him more than his family’s wellbeing and so he wanted this story to be told.”
Mr Don and Ms Mulholland bought the block of land where the accident unfolded only last month.
The plan was to build their forever home for their two children Luna and Piper, where they would watch their two little girls grow up.
That dream is now on hold.
Ms Mulholland, who is a nurse, knows the challenges ahead.
From sitting up, to eating properly, to getting her husband into a wheelchair, the young family’s future will be far from easy.
“(The) only thing keeping me standing (is) all the love,” Ms Mulholland said.
Mr Don’s family and friends have created a GoFundMe page in an effort to finance his medical costs and future medical care and services, support services and equipment, loss of income and house modifications. So far more than 400 people have donated more than $90,500.

Problem with your logic Steve, it is highly likely the cold call "sale" to which the article refers, can be complicated at claim time due to possible non disclosures , then the headline would be all about the non payment of the claim.
Dont get me wrong I hear what your saying, but the random calling of cold leads to sell over the phone has never been a positive outcome for the industry, but good for quick commission sales.

So, what about the plethora of advertised direct insurance businesses that encourage consumers to contact them and then sell them a product over the phone with no consideration of their personal circumstances and the advice is general only ?
This is still ok with ASIC as long as that business does not proactively cold call consumers ??

These may well be the very people that will now miss out on receiving quality advised risk insurance advice because the industry has been decimated with declining remuneration resulting in unprofitable business and an over compliance burden that is strangling the advice process to death.
If advisers who are experienced experts in their field and highly experienced in claims management process are no longer available to assist people just like this, it places an increased financial burden on the public purse and leaves families and businesses devastated when the unexpected happens.
People like this are not concerned if their trusted adviser was paid adequately for the advice provided and the correct products to be in place. The value they are paying for is when or if that strategy and product needs to go to work for them and their family and they have someone to rely on to assist them.
The amount of commission paid to the adviser at claim time is not a conversation that arises and yet the constant and relentless focus and pressure on squeezing the adviser out of business is resulting in a rapidly escalating cohort of people that will be left without adequate insurance in place.

Wow. ASIC finally doing something other than letting banks cheat customers out of money and getting away with it, letting Industry super give advice undere the guise of general advice and banning advisers for miss spelling a client's surname on an SOA.

How will any of the insurers sell products when FASEA kicks in and Risk advisers quit? Direct through internet marketing. I'll laugh all the way to the unemployment office when ASIC realise that getting rid of all advisers who deal with insurance and have to adhere to the Best Interests duty was a horrible idea.

The Lawyers "assisting" claimants must be licking their lips

Add new comment