Watch Out! ASIC is Coming for Insurance Sellers

ASIC [the Australian Securities and Investment Commission] is an independent Australian Government body set up to regulate corporations, entities, investments and financial services [including insurance] and related matters mostly the Corporations Act.

Choosi is a free comparison service for consumers to compare insurance [for life, income protection, funerals, pets car, home & contents, and business] and buy that insurance online.

But now ASIC is suing Choosi over its insurance comparison services.

ASIC alleges that Choosi misled consumers in relation to funeral and life insurance by claiming it compared policies from a range of insurers when in fact all were from the same insurer [Greenstone Financial Services Pty Ltd], which is related to Choosi.

ASIC says that this is misleading and deceptive conduct and that since 2019, it has affected more than 14,700 policies that earned Choosi more than $61 million in commissions.

Time will tell whether ASIC wins and what the consequences are.

However, is this a sign that ASIC is focusing much more closely on what insurance intermediaries operating between insurers and consumers do, their disclosures, whether consumers were misled, and the commissions paid?

If so, should strata insurance intermediaries, like brokers and strata managers, be looking over their shoulder?

You can read ASIC’s Media Release about their legal action here.

And, you watch an ABC News Report about the action below.