ASIC to scrutinise non-advised life sales
The Australian Securities and Investments Commission (ASIC) has signalled its intention to take a close look at non-advised life/risk insurance sales as part of its on-going broader review of claims handling in the life insurance industry.
The regulator signalled the move within its Report 498 covering its Industry Review of Life Insurance Claims.
The report said that "ASIC will conduct a thematic industry review of life insurance sales practices, focusing on sales of non-advised policies, and take enforcement action where necessary".
It said it would do this as part of the second stage of its review which will be completed in January, next year.
It said that in advance of the second stage of the review it expected insurers to:
• Consider ASIC's previous work on sales practices in other areas an apply these principles to life insurance sales where appropriate; and
• Ensure that policy documents provided to policyholders (eg PDSs, application forms and claims forms) are clear and understandable.
The ASIC thematic review will please life/risk advisers many of whom have expressed concern at the degree to which insurers have sought to pursue and expand their non-advised channels.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
