A new class action from Shine Lawyers alleges that more than half a million Australians were charged excessive insurance premiums by financial advisers aligned with AMP, BT and Commonwealth Bank.
Proceedings have already been filed against AMP, which AMP says it will defend.
The proceedings relate to financial advisers aligned with AMP Financial Planning and Hillross Financial Services.
"AMPFP and Hillross are committed to complying with their obligations relating to ensuring their advisers act in the best interests of clients and take these obligations seriously," AMP said in a statement to the ASX.
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"AMPFP and Hillross will defend the proceedings."
Proceedings have also commenced against AMP Life Limited.
Shine is alleging that BT and CBA also sold customers overpriced in-house life, income protection and total and permanent disability insurance but so far proceedings have only been filed against AMP.
"We argue all three financial services providers behaved in a way that was unfair and illegal," Shine class actions practice leader Craig Allsopp said.
"The sheer number of people affected by these premium rorts shows we're not just talking about a few bad apples here but a systemic misconduct in the industry."
Anyone who holds or previously held AMP Flexible Lifetime policies provided through AMPFP, Hillross or Charter Financial Planning advisers is being called on to join the class action along with anyone who held BT Super for Life, BT Super for Life Westpac Group, BT SuperWrap, BT SuperWrap Essentials, BT Panorama Super or BT Superannuation Invest Fund plans between 2014 and 2020.
Also asked to join the class action by Shine are CommInsure life or income protection policy holders who got their insurance through Commonwealth Financial Planning, Financial Wisdom, Count Financial or BW Financial Advice.
The class action against AMP has been filed in the Federal Court. Shine said it expects to file class actions against BT and CBA in the coming weeks.