On Monday, it was confirmed customers who were sold life insurance policies over the phone between 2010 and 2016 are being remediated following intervention by ASIC over the last three years.
OnePath was accused of “poor telephone sales practices” including pressure selling tactics (such as promoting a deferral of the first premium payment), failing to provide information about key policy exclusions and leading the consumer to believe that the salesperson was calling from ANZ Bank with a special offer as the life insurer was owned by the bank at the time.
“For over three years now, ASIC has pursued enforcement, regulatory and remediation action to tackle misconduct and stem consumer harm in the direct life insurance market,” ASIC deputy chair, Karen Chester, said.
“ASIC has delivered deterrence through court action, disruption and improvement in sales practices and delivered compensation to tens of thousands of consumers who have suffered harm.
“Better industry practice and improved consumer outcomes followed ASIC’s deep dive review of direct sales of life insurance in 2018 and three years of concerted regulatory action.
“Notably, the deep dive review also informed the evidence base for several Hayne Royal Commission misconduct case studies. Our review uncovered egregious sales practices, with tens of thousands of consumers paying for products they did not want, did not need, or were not suitable for them.
“It’s really disappointing that despite OnePath offering refunds to around 26,000 consumers, less than one in two consumers (only 41 per cent) have banked their cheque or arranged with OnePath for their refund to be paid into their bank account.”
The remediation, which began in July 2019, is expected to finish this December.
Yet did OnePath lose their licence as an Adviser would if found “guilty” of any breaches by ASIC? There’s one rule for the corporates and another entirely for the rest of us. Even if being judged on the same breaches.
the old riskies and Senior Managers would always say …”life insurance is never purchased it’s sold”…you say that too often and put that mantra in the hands of the wrong people and it’s a license to do no good….. as I’d always reply yes but with informed and educated client consent that’s in the best interest of the client….but i’m just a broke adviser, that will no doubt end up paying again.
Wonder what that does to Insurance premiums considering the whole insurance industry is bleeding and APRA are trying to make it more affordable, maybe APRa can have the $35 million sorted into some sort of payment plan
Guess we will have an increase in adviser levy to pay cost for the provider!!!!
I wonder if they’ll also demand ‘clawback’ of bonuses from executives & management – isn’t that a form of ‘lookback’?
Guess my OnePath premiums and those of my clients will be hiked to cover this cost…
Can they be hiked any further?