In a Fairfax Media report, whistleblower Alison Moore – an employee of the insurance company between 2003 and 2014 – has claimed there is an “endemic and entrenched” culture of “churning”, “twisting” and “overloading” by agents in the company.
These practices have seen thousands of Australians, among them pensioners and the disabled, being sold insurance policies that they will never be able to make a claim on.
It is also alleged that Combined Insurance has facilitated a practice called “tomb-stoning” in which agents sign up dead or non-existent clients and then secretly pay for their initial premiums in order to pocket the commissions.
Ms Moore also alleged that some “senior management of Combined Insurance” are aware of the practices and even support “fraudulent applications for insurance” sold by certain agents in order to increase sales.
“I allege Combined’s audit department inexplicably fails to detect vast numbers of fraudulent applications/sales made by these agents despite being alerted,” Ms Moore said.
Ms Moore revealed to Fairfax Media that she approached the corporate regulator in late 2013 about her concerns.
Her complaint to ASIC alleged that certain agents “have been and still are being paid commissions for upgraded sales to existing clients” despite the questionable practices they have been sold under.
Fairfax Media also reported that ASIC has launched a major investigation into the practices of Combined Insurance.
Combined is just one of the many !! We have ‘insurance agents’ selling life,tpd and IP in my area without doing a Statement of Advice who are ex-Combined agents. The insurance industry needs to have a big look at churning and in no way can any ‘agent’ sell without an SOA.
So is this just a report of a report in another publication?
About Bloody time…… it is companies like Combined Insurance and their practices and products that give the industry a bad name and hence the lack of confidence from consumers. Wield the axe!!
just a few (more) bad apples…nothing to see here!