ASIC clarifies insurance phone sales requirements
General insurance providers will now be able to send their product disclosure statements (PDSs) to retail clients after the quote is given, following the class order relief introduced by the Australian Securities and Investments Commission.
These product providers were previously required to give a PDS to a client at or before the time the quote is provided, due to the fact that a quote may constitute "offer to issue".
However, the regulator was concerned about the inability of product providers to supply quotes during telephone calls solicited by clients.
Under the relief, the client can choose to receive the PDS, and if they do, the general insurer or intermediary must give a PDS as soon as practicable after the quote is given.
"This means that the PDS can be given after the telephone call," the regulator stated in its announcement.
The relief, however, does not apply to telephone calls not facilitated by the client.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
