ASIC Says Choosi Compared Policies From Just 1 Insurer

Epoch Times

3 days ago

The Australian Securities and Investments Commission (ASIC) has launched proceedings against insurance comparison service Choosi, accusing the company of misleading consumers.
According to ASIC, insurer Hannover paid Choosi approximately $61 million in commissions between 2019 and 2024 to exclusively promote its insurance products.
The regulator says that during this period, Choosi was responsible for the sale of 4,225 funeral insurance policies and 9,478 life insurance policies—all linked to Hannover.
ASIC Deputy Chair Sarah Court said the enforcement action is aimed at protecting consumers trying to find the best insurance deals.
One Insurer Behind the Illusion of Choice
ASIC claims that since mid-July 2019, Choosi has mostly compared only Hannover-issued policies, with just one exception during the entire timeframe.
Hannover, a global insurance provider, operates two Australian entities: one for property and casualty insurance and another for life and health insurance. ASIC says the $61 million in commissions was paid to ensure only Hannover's offerings were promoted on the site.
'We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice,' Court said in the statement.
Although funeral insurance products on Choosi's site appear under three separate brand names, ASIC says all are underwritten by Hannover.
Similarly, Choosi compares five life insurance policies that look distinct but are also issued by Hannover—except for a brief period before July 2023 when one additional insurer was included.
ASIC says all policies were distributed by Greenstone Financial Services, a company affiliated with Choosi.
'What we're seeing here is the Choosi platform really being used by Hannover as just a platform to distribute its products, with no comparison going on with other insurers at all,' Court said.
She added that the promotional campaign had been broad and long-running.
'We know that this was a very widespread advertising campaign by Choosi over many years ... and we know there have been thousands of policies that have been sold,' she said.
ASIC criticises the company for presenting misleading information across multiple platforms—including Choosi's website, social media, TV commercials, and advertorials.
Between July 1, 2019, and Nov. 30, 2024, Choosi is said to have sold thousands of policies under this arrangement.
Court emphasised that if the Federal Court rules in ASIC's favour, 'it will be important for [ASIC] to seek substantial penalties.'