FSC Says Hawking of Insurance ‘Unacceptable’

The Financial Services Council has declared its support for no hawking of insurance, saying pressure selling insurance products, over the phone or otherwise, is unacceptable.

FSC CEO, Sally Loane …insurers shouldn’t be able to cold-call people

FSC CEO, Sally Loane, says insurers should not be able to cold-call people with the view to sell life insurance or consumer credit insurance.

“There is no place for cold calling and pressuring random people into buying a life insurance product they don’t need, want or understand,” Loane said.

“There is no place for cold calling and pressuring random people into buying a life insurance product they don’t need, want or understand.”

“For an outbound call to be justified, a person must first have given their positive, clear and informed consent, before being contacted.

She added: “Additionally, given there is no legislated time frame in which calls need to be made, the FSC believes an initial call should be made within three months of consent.

“It is important to note that the industry has already made significant improvements through better use of monitoring and oversight, through remuneration practices, appropriate incentives, culture, training and the FSC Life Insurance Code of Practice.

Loane explained these anti-hawking measures make sure that conduct on all calls is at the highest standards.

The FSC submission is in response to Recommendation 4.1 of the Financial Services Royal Commission, that hawking of insurance products should be prohibited.

This recommendation, 4.1, taken from the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

  • Ken

    Really
    I hope they start at the right spot?! The policy “ flogging” on line through TV adds social media etc etc etc that do not show the whole picture ( no paperwork no questions no care just apply ) and if you claim we will see if it was pre existing or could it be?
    Not to mention is it enough cover to much cover or the right cover
    Dear me as long as it’s cheap it appears it will do !