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ASIC PUTS INSURERS ON NOTICE IN THE SALE OF ADD-ON INSURANCE THROUGH CAR DEALERS | AADA | Australian Automotive Dealer Association

The key commitments ASIC are seeking from insurers are:

  • A significant reduction in the amount of commissions paid to anyone who on-sells an add-on insurance product through car Dealers
  • A significant improvement in the value offered by these products, through substantial reductions in price and better product design and cover
  • A move away from single upfront premiums that are financed through the loan contract, given the adverse financial impact this has on consumers
  • Providing refunds to consumers who have been sold policies in circumstances that were unfair, such as where a policy has been sold to a consumer who was never eligible to claim under the policy.

Insurers have notified ASIC that they intend to implement a 20 per cent cap on commissions and also provide ASIC on a regular basis with data on prices, premiums and claims so that ASIC can monitor the impact of changes on consumers

 

Source: ASIC PUTS INSURERS ON NOTICE IN THE SALE OF ADD-ON INSURANCE THROUGH CAR DEALERS | AADA | Australian Automotive Dealer Association

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