An online insurance service has made changes to its websites after the Australian Securities and Investments Commission found the sites contained misleading and deceptive advertising.
Insure 247, an authorised representative of the Ausure Group, operates a number of websites which allow consumers to access quotes for a range different insurance products, including income protection and life insurance. The websites (www.insure247.com.au, www.quotesonline.com.au, www.greatchoice.com.au and www.ezisure.com.au) collect consumers’ details and pass them on to a referral partner (a broker or direct insurer) to supply the consumers with a quote or quotes.
According to ASIC, the websites gave the impression consumers were accessing an online tool which compared the features and costs of products available. However, the regulator said its review of Insure 247’s operations found there was no evaluation or comparison of the products.
In addition, ASIC said that Insure 247 displayed logos of insurance providers that were not offering quotes for the product featured on that page of the website. This practice had the potential to mislead consumers, ASIC said, because in some cases only one insurance provider received a consumer’s request for a quote, when the consumer was likely to think their details would be passed to many insurers.
In response to ASIC’s concerns, Insure 247 has changed the content of its websites to now prominently state, on the home pages and every product page, that it is not a market comparison service. Insure 247 has also corrected the use of logos and made it clear to consumers that when seeking an insurance quote, only one quote may be provided for some products.
ASIC Deputy Chairman, Peter Kell, said: “Operators of websites must take care to ensure they accurately portray the features and limitations of the services they advertise.”
Can ASIC look at all the direct offerings, including shadow shopping over the phone call centres, who are always advising clients when clearly they are in breach.
One example is a well known direct Company whose sales person told us when we questioned a 90 day waiting period and a 6 month benefit period for Income protection, that most claims are for less than 6 months, so that is all people should take.
I can vouch your experience Jeremy. I shadow shopped 3 direct providers by phone as research for a planner presentation I ran recently. The most breathtaking question I received on remarking the IP premium quoted seemed high compared to my existing cover was “but do you really need $8,000 a month cover sir?”
They are not the only ONE look at the Zurich website misleading deceptive claims about agreed valued claims
Blatant Fraud!
If it were a licensee or adviser, ASIC would have closed them down immediately for inadequate advice!
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