Powered by MOMENTUM MEDIA
subscribe to our newsletter

Youi pays $164,000 for poor insurance sales practices

Insurance provider Youi has refunded 102 consumers approximately $14,000 and will pay $150,000 as a community benefit payment to the Financial Rights Legal Centre’s Insurance Law Service, after ASIC raised concerns about its home and car insurance sales practices.

Youi has also engaged an independent firm (EY) to conduct a review of sales practices in response to concerns that some sales staff were charging consumers for insurance policies without their consent to purchase. This included where consumers only made an inquiry to get an insurance quote.

ASIC was concerned that Youi’s remuneration and bonus structures incentivised sales staff to prioritise sales ahead of consumers’ interests.

ASIC noted that since its review, Youi has changed its remuneration structure and reduced the incentives provided to sales staff based on sales volumes and reviewed sales scripts and staff training. The insurer has also introduced new controls and monitoring of sales staff and made significant changes to its legal, risk and compliance capability.

EY will conduct a follow-up review to assess the implementation and test the effectiveness of the recommendations made in their initial assessment of Youi’s risk culture and review of sales practices. A final report will be provided to ASIC by 30 June 2018.

Advertisement
Advertisement

PROMOTED CONTENT


Acting ASIC chair Peter Kell said that positive consumer outcomes should be at the heart of sales structures.

“It is completely unacceptable that customers were signed up for Youi insurance policies without their knowledge or permission,” Mr Kell said.

Youi pays $164,000 for poor insurance sales practices
mortgagebusiness

Latest News

The digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.