On 30 August, ASIC released two reports into direct life insurance.
Report 587 The sale of direct life insurance summarises the findings and recommendations from ASIC’s review of the sale of direct life insurance products in Australia, including term life, accidental death, trauma, total and permanent disability (TPD) and income protection insurance. ASIC states that this review found that sales practices and product design are leading to poor consumer outcomes.
Report 588 Consumers’ experiences with the sale of direct life insurance sets out the results of research into consumers’ experiences in buying life insurance directly – that is, without getting personal advice from a financial adviser or buying through a group arrangement like superannuation. ASIC states that this report found consumers struggle with the direct life insurance sales experience and the complexity of the products, and consumer understanding of key features is often poor.