3 days ago
ASIC sues Choosi over funeral and life insurance policies
The comparison website Choosi has come under scrutiny for its funeral and life insurance offerings to potential customers.
ASIC alleges the company made misleading representations not just on its website, but across social media, television commercial and advertorials from July 1, 2019.
Choosi offers free comparison services from a range of companies, with consumers encouraged to choose one that is the most economical for them.
The comparison company then earns commission if a customer signs up.
Choosi's insurance services range from home and contents, pet, business and car.
But it's Choosi's funeral and life insurance comparison services that ASIC alleges has made false or misleading representations to Australians.
ASIC alleges Choosi states the insurance products are from a variety of companies.
But in filed proceedings in the Federal Court, ASIC alleges Choosi only compared funeral and life insurance policies from a lone insurer - with just one limited exception.
And the single insurer Choosi used had all policies distributed by Greenstone Financial Services Pty Ltd. - a company associated with Choosi.
ASIC alleges this is still ongoing.
Since July 2019, ASIC alleges a staggering 4,225 funeral insurance policies and 9,478 life insurance policies were taken out by Australians - leading to a whopping $61 million in commissions for Choosi.
ASIC Deputy Chair Sarah Court said ASIC needed to take action so companies could be stopped from misleading customers who were just trying to find the best deal.
"We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers," she said.
"We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice.
"Consumers may have been encouraged to buy a funeral or life insurance policy when a cheaper or more suitable policy might have been available from other insurers that were not assessed."
The Deputy Chair said any comparison website 'must provide a meaningful comparison service' and not operate as a sales channel or work as a distribution platform for selected companies.
CEO Paul Duggan told The Senior when it comes to comparison services, consumers deserve transparency.
"Regardless of industry, if a company claims to do something that they don't, that's not on," he said.
"And when it comes to long-term products like life or funeral insurance, that can have serious consequences for consumers' financial wellbeing."
The CEO advises Australians using comparison sites to do a checklist to make sure they aren't being taken advantage of.
"Are multiple brands being shown? Do you recognise or trust the brands listed? How many providers are actually being compared?" he said.
"And can you access detailed information about each product you're reviewing?"
The comparison website Choosi has come under scrutiny for its funeral and life insurance offerings to potential customers.
ASIC alleges the company made misleading representations not just on its website, but across social media, television commercial and advertorials from July 1, 2019.
Choosi offers free comparison services from a range of companies, with consumers encouraged to choose one that is the most economical for them.
The comparison company then earns commission if a customer signs up.
Choosi's insurance services range from home and contents, pet, business and car.
But it's Choosi's funeral and life insurance comparison services that ASIC alleges has made false or misleading representations to Australians.
ASIC alleges Choosi states the insurance products are from a variety of companies.
But in filed proceedings in the Federal Court, ASIC alleges Choosi only compared funeral and life insurance policies from a lone insurer - with just one limited exception.
And the single insurer Choosi used had all policies distributed by Greenstone Financial Services Pty Ltd. - a company associated with Choosi.
ASIC alleges this is still ongoing.
Since July 2019, ASIC alleges a staggering 4,225 funeral insurance policies and 9,478 life insurance policies were taken out by Australians - leading to a whopping $61 million in commissions for Choosi.
ASIC Deputy Chair Sarah Court said ASIC needed to take action so companies could be stopped from misleading customers who were just trying to find the best deal.
"We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers," she said.
"We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice.
"Consumers may have been encouraged to buy a funeral or life insurance policy when a cheaper or more suitable policy might have been available from other insurers that were not assessed."
The Deputy Chair said any comparison website 'must provide a meaningful comparison service' and not operate as a sales channel or work as a distribution platform for selected companies.
CEO Paul Duggan told The Senior when it comes to comparison services, consumers deserve transparency.
"Regardless of industry, if a company claims to do something that they don't, that's not on," he said.
"And when it comes to long-term products like life or funeral insurance, that can have serious consequences for consumers' financial wellbeing."
The CEO advises Australians using comparison sites to do a checklist to make sure they aren't being taken advantage of.
"Are multiple brands being shown? Do you recognise or trust the brands listed? How many providers are actually being compared?" he said.
"And can you access detailed information about each product you're reviewing?"
The comparison website Choosi has come under scrutiny for its funeral and life insurance offerings to potential customers.
ASIC alleges the company made misleading representations not just on its website, but across social media, television commercial and advertorials from July 1, 2019.
Choosi offers free comparison services from a range of companies, with consumers encouraged to choose one that is the most economical for them.
The comparison company then earns commission if a customer signs up.
Choosi's insurance services range from home and contents, pet, business and car.
But it's Choosi's funeral and life insurance comparison services that ASIC alleges has made false or misleading representations to Australians.
ASIC alleges Choosi states the insurance products are from a variety of companies.
But in filed proceedings in the Federal Court, ASIC alleges Choosi only compared funeral and life insurance policies from a lone insurer - with just one limited exception.
And the single insurer Choosi used had all policies distributed by Greenstone Financial Services Pty Ltd. - a company associated with Choosi.
ASIC alleges this is still ongoing.
Since July 2019, ASIC alleges a staggering 4,225 funeral insurance policies and 9,478 life insurance policies were taken out by Australians - leading to a whopping $61 million in commissions for Choosi.
ASIC Deputy Chair Sarah Court said ASIC needed to take action so companies could be stopped from misleading customers who were just trying to find the best deal.
"We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers," she said.
"We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice.
"Consumers may have been encouraged to buy a funeral or life insurance policy when a cheaper or more suitable policy might have been available from other insurers that were not assessed."
The Deputy Chair said any comparison website 'must provide a meaningful comparison service' and not operate as a sales channel or work as a distribution platform for selected companies.
CEO Paul Duggan told The Senior when it comes to comparison services, consumers deserve transparency.
"Regardless of industry, if a company claims to do something that they don't, that's not on," he said.
"And when it comes to long-term products like life or funeral insurance, that can have serious consequences for consumers' financial wellbeing."
The CEO advises Australians using comparison sites to do a checklist to make sure they aren't being taken advantage of.
"Are multiple brands being shown? Do you recognise or trust the brands listed? How many providers are actually being compared?" he said.
"And can you access detailed information about each product you're reviewing?"
The comparison website Choosi has come under scrutiny for its funeral and life insurance offerings to potential customers.
ASIC alleges the company made misleading representations not just on its website, but across social media, television commercial and advertorials from July 1, 2019.
Choosi offers free comparison services from a range of companies, with consumers encouraged to choose one that is the most economical for them.
The comparison company then earns commission if a customer signs up.
Choosi's insurance services range from home and contents, pet, business and car.
But it's Choosi's funeral and life insurance comparison services that ASIC alleges has made false or misleading representations to Australians.
ASIC alleges Choosi states the insurance products are from a variety of companies.
But in filed proceedings in the Federal Court, ASIC alleges Choosi only compared funeral and life insurance policies from a lone insurer - with just one limited exception.
And the single insurer Choosi used had all policies distributed by Greenstone Financial Services Pty Ltd. - a company associated with Choosi.
ASIC alleges this is still ongoing.
Since July 2019, ASIC alleges a staggering 4,225 funeral insurance policies and 9,478 life insurance policies were taken out by Australians - leading to a whopping $61 million in commissions for Choosi.
ASIC Deputy Chair Sarah Court said ASIC needed to take action so companies could be stopped from misleading customers who were just trying to find the best deal.
"We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers," she said.
"We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice.
"Consumers may have been encouraged to buy a funeral or life insurance policy when a cheaper or more suitable policy might have been available from other insurers that were not assessed."
The Deputy Chair said any comparison website 'must provide a meaningful comparison service' and not operate as a sales channel or work as a distribution platform for selected companies.
CEO Paul Duggan told The Senior when it comes to comparison services, consumers deserve transparency.
"Regardless of industry, if a company claims to do something that they don't, that's not on," he said.
"And when it comes to long-term products like life or funeral insurance, that can have serious consequences for consumers' financial wellbeing."
The CEO advises Australians using comparison sites to do a checklist to make sure they aren't being taken advantage of.
"Are multiple brands being shown? Do you recognise or trust the brands listed? How many providers are actually being compared?" he said.
"And can you access detailed information about each product you're reviewing?"
