Regulatory Alerts2025-08-19
ASIC urges life insurers to improve direct sales practices
The Australian Securities and Investments Commission has issued a directive to life insurance companies to enhance their product design, sales, and complaints handling practices ahead of potential direct sales expansion. Commissioner Alan Kirkland outlined four key recommendations, including linking staff pay to compliance, treating complaints as business intelligence, and ensuring consistent quality standards for retention calls. The regulator warned that it will commence investigations or take action against firms that fail to demonstrate significant improvements, noting that dispute rates have more than doubled since the last review in 2018.
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