Ban unsolicited life insurance sales: Poll

An overwhelming number of Financial Standard readers have backed corporate regulator ASIC's move to ban the unsolicited sales of life insurance.

Ninety-four percent of participants, who voted in a spot poll conducted last week, said life insurance and   consumer credit insurance (CCI) sold via call centre staff should be outlawed.

The financial services Royal Commission recommended that the unsolicited sales of superannuation and insurance products should be prohibited.

ASIC will act on this recommendation, aiming to protect consumers where it identifies ongoing sales issues and evidence of consumer harm.

It has taken action against a number of firms that have missold direct life insurance and CCI.

ClearView has refunded over $1.5 million to 16,000 customers who were pressured to buy life insurance over the phone. Commonwealth Bank refunded over $10 million in August 2017 for misselling CCI.

ASIC said the ban forms part of its broader priority to address harms in insurance.

Once the ban is implemented, it will monitor compliance and take enforcement action against non-complying insurers or distributors. Consultation is open until August 29.

ASIC also intends to review guidance in Regulatory Guide 38 The hawking provisions later this year.

This week's spot poll asks if you support the increases to the Superannuation Guarantee.

Read more: ASICFinancial StandardClearViewCommonwealth BankRoyal Commission
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