ASIC looks at direct life sales

ASIC is warning life insurers to do better when it comes to their direct sales practices that have placed doubt on their compliance obligations and put consumer outcomes at risk.

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While some life insurance firms have improved since ASIC's 2018 review into direct sale practices, “notable deficiencies” remain, the regulator expressed in a letter to chief executives.

What has not improved are claims disputes for directly sold policies, still significantly increasing across all channels with dispute rates more than doubling since 2018.

“There have also been concerning increases in rates of disputes involving policies sold through a financial adviser,” ASIC said.