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ClearView part of wider insurance problem

The Australian Securities and Investment Commission’s (ASIC’s) damning findings on ClearView, which would see the insurer refund $1.5 million to consumers, reflects wider concerns regarding aggressive sales tactics from insurers, according to Maurice Blackburn Lawyers.

High pressure sales tactics, such as those ClearView was penalised for, would go against consumers’ best interests and could lead to junk insurance policies for customers.

Maurice Blackburn superannuation and insurance principle, Josh Mennen, said that too often misleading statements are made to secure a sale, even when it is not in the consumer’s best interests or even when they have not properly consented.

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He pointed to the fact that a number of the policies sold by ClearView were to consumers in areas with a high Indigenous population where English isn’t always their first language as proof of this.

“This sort of behaviour is a blatant breach not only of the rights of those consumers, but of the obligations on insurers to ensure that products offered are in the consumer’s best interest,” he said.

Mennen said that the fact that these practices were still occurring as recently as last June, when ASIC began to scrutinise ClearView, showed that some in the industry had not learnt from its failings.

He called on the Hayne Royal Commission to investigate the use of high pressure sales tactics to sell “often inappropriate or useless investment and insurance products.”

 




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Good job but what about industry funds? They don't even ask for permission. They just set up life insurance and rip the premiums out of member accounts. Even those with low balances and multiple accounts ie. typically low income and financially illiterate workers. The profits are then delivered to higher balance, more astute members through lower fees. It disgusts me. I'm sick of seeing poor people abused like this, with their small balances drained away. The practice needs to stop immediately and ASIC needs to grow up and stop favouring these funds.

Agree with you Ben

ASIC you are a joke. Why did none of the staff at ClearView get in any trouble and ClearView get off pretty much scot free. If an adviser had done this they would have lost their license however the direct sales staff who get paid the sames commission without any training or compliance get away with everything.

Why would anyone continue to give advice for insurance when you have so much more bullshit to cope with and you also leave yourself open to ASIC fines etc. Why wouldn't everyone just give general advice with no threat of action from ASIC?

If you want to fix the Risk Industry then you have to level the playing field ASIC.

It's disappointing, I thought their CEO made some sense as he was able to speak against bank owned distribution, but now it seems he was really the wolf in sheeps clothing.

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