CBA Cops $300,000 Fine Over Misleading Life Insurance Ads

CBA Cops $300,000 Fine Over Misleading Life Insurance Ads
SHARE
THIS



CBA’s life insurance business will pay $300,000 towards a consumer advice service and have its advertising sign-off processes independently reviewed, following an investigation by the corporate watchdog.

The Australian Securities and Investments Commission (ASIC) raised concerns about certain instances of CommInsure’s life insurance ads, after commencing an investigation in April 2016. 

This included a review of CommInsure’s advertising of two life insurance policies: Total Care Plan, sold through financial advisers; and Simple Life Insurance, sold directly to consumers. 

The review looked at advertising from mid-2013 to March 2016 and found that misleading and deceptive statements are likely to have been made on some of CommInsure’s websites about the extent to which customers would be entitled to cover for trauma if they suffered a heart attack. 

According to ASIC, the statements may have led a policyholder to believe they would be entitled to a lump sum payment if they suffered a heart attack in general, when in fact only certain types of heart attacks, which met certain medical criteria as defined in the policy, were covered. 

In response to ASIC’s concerns, CommInsure will commission an external firm to conduct a compliance review of its advertising sign-off processes and procedures. 

The review will look at whether CommInsure’s processes and procedures ensure compliance with the ASIC Act, and make recommendations to improve compliance if required. 

CommInsure will report to ASIC by 30 June 2018 on the results of the review and the changes implemented. 

As previously announced, CommInsure updated the definition of heart attack in its trauma life insurance products in March 2016 and is reassessing past claims under the updated definition back to October 2012. 

To date, CommInsure has paid additional benefits for 32 claims, totalling approximately $4 million as a result of the reassessed claims. 

Please login with linkedin to comment

ASIC Australian Securities and Investments Commission CBA CommInsure

Latest News

Former Agency Execs Launch Car Service Summon
  • Marketing
  • Media

Former Agency Execs Launch Car Service Summon

Former agency executives Tim O’Neill and Tim Fouhy have launched the auto technology startup Summon. Australia’s first full e-commerce service for prestige cars. O’Neill and Fouhy both worked together at Accenture Interactive, before co-founding Reactive a digital agency bought by Accenture in 2016, now they’ve combined their knowledge and expertise to create Summon. Summon offers […]

Hootsuite Shares The Top Social Media Trends Of The Tokyo 2020 Paralympic Games
  • Media

Hootsuite Shares The Top Social Media Trends Of The Tokyo 2020 Paralympic Games

To honour the fantastic feats of the Australian Paralympians, Hootsuite has revealed the top trending hashtags and social media data of the Paralympics. The top trending hashtag during the Paralympics period, #tokyo2020, received over 38,000 tweets and retweets, amounting to 1.7M+ impressions, while other popular hashtags included #paralympics, #readysettokyo and #paraswimming. According to Hootsuite’s research, […]

SOON, Think Tank Giving Insights Into Future Trends, Officially Launches
  • Advertising

SOON, Think Tank Giving Insights Into Future Trends, Officially Launches

SOON, a futures think tank focused on human insights, has launched today tracking trends, developments and disruptions across people, products and the planet. Led by internationally renowned futurist, social scientist and trend forecaster Sarah Owen (pictured centre) in partnership with TABOO directors Andrew Mackinnon (right) and James Mackinnon (left), the independently Australian-owned futurist company uncovers […]

iHeartPodcast Network Australia Launches SAS Australia Debrief Podcast
  • Media

iHeartPodcast Network Australia Launches SAS Australia Debrief Podcast

ARN’s iHeartPodcast Network Australia has announced a new podcast, SAS Australia Debrief hosted by 2020 recruits Merrick Watts and Sabrina Frederick. The podcast is made for anyone that can’t get enough of Aussie celebs putting themselves through the toughest test of their lives on the Seven Network’s hit show SAS Australia. Or anyone that wishes […]

Rakuten Advertising Shares Blueprint For Affiliate Marketing
  • Technology

Rakuten Advertising Shares Blueprint For Affiliate Marketing

Rakuten Advertising has launched ‘A 5-Stage Blueprint for High-Performance Affiliate Marketing’, designed to educate and inform both advertisers and publishers about the strategic role that the affiliate channel is now playing in marketing strategies. The blueprint is based on input from members of the Rakuten Advertising International Collective (RAIC), comprising affiliate marketing specialists from leading advertisers […]

EngageTV Launches Metro Connected TV Campaign In Sydney And Melbourne
  • Media

EngageTV Launches Metro Connected TV Campaign In Sydney And Melbourne

EngageTV, Australia’s most sophisticated CTV & BVOD service partner, has today launched a Sydney and Melbourne metro Connected TV campaign to help business owners and marketers better understand what can be achieved with CTV.

by B&T Magazine

B&T Magazine
Adland State Of Originality To Return For Nine’s 2022 Origin Series
  • Media

Adland State Of Originality To Return For Nine’s 2022 Origin Series

Nine has announced the return of State of Originality, Australia’s biggest advertising prize, with $1 million again up for grabs to the brand and agency that creates the most original ad in the 2022 State of Origin Series. This year Nine launched State of Originality, challenging Australia’s marketers to help make State of Origin not […]