Direct insurer, Real Insurance, has responded to concerns raised by the Australian Securities and Investments Commission (ASIC) over the promotion of its funeral insurance product.
Real Insurance, which is a brand of Hollard Financial Services, has relaunched its funeral insurance offer, and has agreed to implement changes to the way it promotes funeral insurance. The enhanced product includes a premium freeze at age 80, and reduced premiums across most age ranges; clients can also now choose from fixed or age-based rates.
In relation to ASIC’s concerns over the way the product was advertised, Real Insurance has renamed the product ‘Real Final Expenses Cover’, to reflect the fact that the benefit can be used to cover more than just funeral costs when someone passes away.
ASIC flagged its concerns with the insurer in 2012, following a review of the funeral insurance industry (see: Consumer Uncertainty Over Funeral Insurance). The regulator said it believed the industry was not being sufficiently clear in advertising and disclosing key aspects of the product to customers.
We will continue to work to get commitment to similar standards of advertising across the funeral insurance industry
John Roche, General Manager of Hollard Financial Services, said the group had worked closely with ASIC to ensure that Real’s funeral insurance advertising was in line with their recommendations.
“This focused on three key areas: greater disclosure around the nature of premiums; making imagery consistent with the price points being discussed; and the disclosure of risk with regards refunds if policies are cancelled,” Mr Roche said.
ASIC Deputy Chairman, Peter Kell, confirmed that Hollard Financial Services had engaged constructively with the regulator.
“We think the changes they are making to their advertising will significantly improve the way in which important features of this product are conveyed to consumers. We will continue to work to get commitment to similar standards of advertising across the funeral insurance industry,” Mr Kell said.
The announcement follows the relaunch of another direct funeral insurance product, from TAL-backed InsuranceLine (see: InsuranceLine Throws Down Gauntlet on Funeral Insurance).
