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TheAustralian

National Agenda

Watchdog targets dodgy life insurance products

The corporate watchdog is ¬prepared to prosecute some of the nation’s largest superannuation funds for high-cost, low-value insurance  
  • The Australian Securities & Investments Commission found funds failed to comply with a new code of conduct aimed at limiting insurance fees. 
  • ASIC is pushing trustees to take a more active role throughout the claims process, from claim lodgement to decision review and possible complaint. 
  • About 12 million Australians hold insurance — for life, total and permanent disability, and income protection — through their super fund. 

Takeout

This move comes as part of the wider increased scrutiny into the practices of financial services providers, which has seen a sharp decline in consumer trust in the industry. Smart brands will get ahead of the curve by increasing transparency and phasing out poor practices.  

Source: The Australian - ASIC targets junk superannuation insurance