Royal Commission document puts life/risk commissions in play
The banning of direct insurance via outbound phone calls has been formally canvassed by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
In a policy document resulting from its latest around of hearings focused on insurance, the Royal Commission has questioned whether the sale of direct insurance via outbound telephone should be banned.
Further, it has questioned whether if such practices are not banned, the current regulatory environment should be changed in a way that would be adequate to avoid consumer detriment.
Elsewhere in the Royal Commission policy document it has also questioned whether “monetary benefits given in relation to life risk insurance products [should] remain exempt from the ban on conflicted remuneration”.
“Why shouldn’t the cap on such benefits continue to reduce to zero?” the Royal Commission document asked.
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