Youi has refunded 102 consumers approximately $14,000 in total, and will pay $150,000 as a community benefit payment to the Financial Rights Legal Centre’s Insurance Law Service, after ASIC raised concerns about its home and car insurance sales practices.
Youi engaged an independent firm to conduct a review of sales practices in response to concerns that “some sales staff were charging consumers for insurance policies without their consent to purchase. This included where consumers only made an inquiry to get an insurance quote”.
ASIC stated that it “was concerned that Youi’s remuneration and bonus structures incentivised sales staff to prioritise sales ahead of consumers’ interests.”
ASIC reports that Youi has since the review:
- Changed its remuneration structure and reduced the incentives provided to sales staff based on sales volumes
- Reviewed sales scripts and staff training
- Introduced new controls and monitoring of sales staff
- Made significant changes to its legal, risk and compliance capability.
A follow-up review is to be conducted by the independent firm to assess the implementation and test the effectiveness of the recommendations made in the initial assessment of Youi’s risk culture and review of sales practices. A final report will be provided to ASIC by 30 June 2018.
17-411MR Youi pays $164,000 for poor insurance sales practices
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