{"id":45674,"date":"2019-07-22T08:21:13","date_gmt":"2019-07-21T22:21:13","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=45674"},"modified":"2019-07-24T06:30:44","modified_gmt":"2019-07-23T20:30:44","slug":"asic-proposes-ban-on-direct-life-insurance-tele-sales","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/07\/22\/asic-proposes-ban-on-direct-life-insurance-tele-sales\/","title":{"rendered":"ASIC Proposes Ban on Direct Life Insurance Tele-Sales"},"content":{"rendered":"

ASIC has released a consultation paper<\/a> as it considers whether to impose a ban on unsolicited telephone sales of direct life insurance.<\/p>\n

<\/p>\n

\"\"<\/a>
ASIC Commissioner, Sean Hughes …concerned consumers will preyed on by peddlers of inappropriate insurance products<\/figcaption><\/figure>\n

Before making its final decision, the regulator is seeking views from all interested stakeholders on its proposition, which includes the banning of both direct life insurance and consumer credit insurance telephone sales.<\/p>\n

ASIC notes it announced in August 2018 that it would restrict unsolicited sales of direct life insurance after it found a link between outbound sales calls and sales conduct issues, including pressure selling (see ASIC Report 587<\/a>). Last week, the regulator also released its Report 622<\/a> on Consumer credit insurance: Poor value products and harmful sales practices.<\/p>\n

ASIC Commissioner Sean Hughes<\/strong>, who commenced in his role in December 2018 noted, “…It is only fair that consumers have a proper opportunity to consider which insurance product best meets their needs and then compare alternative products, without feeling pressured to make a purchase.”<\/p>\n

…we are concerned that consumers will continue to be preyed upon by peddlers of inappropriate insurance products<\/h6>\n

Commissioner Hughes added that such a ban is consistent with the Financial Services Royal Commission recommendations, and will provide consumers with further protections from misselling practices now, ahead of wider law reform by Government: “Without such a ban, we are concerned that consumers will continue to be preyed upon by peddlers of inappropriate insurance products, using pressure sales tactics,” said the Commissioner.<\/p>\n

In its release, ASIC notes the Banking Royal Commission recommended that the law should be changed to clearly prohibit unsolicited sales of superannuation and insurance products. It says the Government has committed to implement this recommendation, but in the meantime, ASIC says its ban will protect consumers where it has identified ongoing sales issues and has evidence of consumer harm…<\/p>\n

The regulator advises consultation is open for a period of six weeks, with submissions due by 29 August 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"

ASIC has released a consultation paper as it considers whether to impose a ban on unsolicited telephone sales of direct life insurance.<\/p>\n","protected":false},"author":3,"featured_media":45703,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4247],"class_list":["post-45674","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/45674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=45674"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/45674\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/45703"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=45674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=45674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=45674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}