The Australian Securities and Investments Fee (ASIC) has banned life insurers from making chilly calls to potential prospects in Australia to promote life insurance coverage insurance policies.
The ban, which additionally covers shopper credit score insurance coverage (CCI), is geared toward abolishing predatory gross sales practices which have brought on large uproar within the Australian insurance coverage market in current occasions.
Beginning 13 January 2020, the regulation will shield the shoppers from shopping for insurance coverage merchandise they didn’t require.
ASIC stated that the ban is according to the suggestions made by the Monetary Companies Royal Fee.
Commenting on the mandate, ASIC commissioner Sean Hughes stated: “ASIC will intervene to cease practices that result in poor shopper outcomes and destroy belief within the monetary system.
“This motion attracts a transparent line within the sand. From January corporations will now not have the ability to name shoppers out of the blue and use refined gross sales ways to strain folks into shopping for life insurance coverage and CCI merchandise.”
Final month, the ASIC imposed a financial penalty of A$700,000 ($478,950) on CommInsure, the life insurance coverage enterprise of Commonwealth Financial institution of Australia, for violating an anti-hawking regulation.
On the similar time, ASIC began civil penalty proceedings in opposition to Choose AFSL for its illegal telephony gross sales of life and unintended damage insurance coverage.