CommBank’s Insurance Arm Admits To Misleading Advertising

CommBank’s Insurance Arm Admits To Misleading Advertising
SHARE
THIS



CommInsure executive general manager Helen Troup has admitted the Commonwealth Bank arm had used outdated medical definitions in a series of insurance claim advertisements, as part of the royal commission hearing into banking.

Facing senior counsel assisting the inquiry Rowena Orr QC in court, Troup was asked whether CommInsure used misleading terms in advertisements, resulting in claims for heart attacks being rejected.

Following a 2016 investigation led by the ABC which uncovered the use of outdated definitions in the advertisements, The Australian Securities and Investments Commission (ASIC) undertook an investigation.

Despite ABC’s investigation, ASIC found CommInsure had not broken the law.

During this week’s inquiry hearing, Orr asked Troup: “Did ASIC take any enforcement action against CommInsure in relation to any of these advertisements?”

To which Troup responded: “I’m not sure if enforcement action is the correct term, but we did come to an agreement as to how to close the matter.”

Orr then asked: “CBA suggested to ASIC what ASIC should say in its media release?”

“It provided feedback, yes,” Troup said.

Commissioner Kenneth Hayne later asked Troup: “If we simply take the type of alleged contravention being singular for each advertisement, the maximum punishment was of the order of $8 million, on this maths, is that right?”

“Yes, sir,” Troup said.

Hayne asked: “At the end of the day, Ms Troup, did CommInsure come out of this process thinking that it had been punished or brought to book?” Hayne asked.

“Yes we did, sir.”

Please login with linkedin to comment

CommBank CommInsure Commonwealth Bank misleading advertising

Latest News

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own
  • Advertising
  • Campaigns

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own

Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]

Are You Paying Too Much In Search Marketing?
  • Partner Content

Are You Paying Too Much In Search Marketing?

Are you paying too much for search marketing? Discover the awful truth here. Or, alternatively, look at the invoice.

Partner Content

by B&T Magazine

B&T Magazine
Nine APAC Finalists In One Club’s Young Guns 19 Competition
  • Advertising

Nine APAC Finalists In One Club’s Young Guns 19 Competition

Nine creatives from APAC are among the 94 finalists from 27 countries in The One Club for Creativity’s prestigious Young Guns 19 competition, celebrating international creative professionals age 30 or younger. The finalists from APAC are: Hiu Ching Kung, graphic designer, Hong Kong Lam Ieong Kun, graphic designer, illustrator, indego design, Macau Raxenne Maniquiz, graphic designer, illustrator, Santa Maria (Philippines) Kiyotaka […]

Adflow’s Regional OOH Coverage Expands By 60%
  • Media

Adflow’s Regional OOH Coverage Expands By 60%

OOH transit company Adflow has announced the success of the first phase of its regional expansion program. Adflow’s regional footprint has increased by 60 per cent to now include 65 regional locations. With 9.1 million people living regionally in Australia (growth of 1.1 per cent experienced in the 19/20 Financial year) and most regional centres […]

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion
  • Technology

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion

Freshworks, a leading software company, has started trading on the Nasdaq Global Select Market, marking an important milestone for the company. The company priced its IPO at US$36 per share (AU$49.76), raising about US$1 billion (AU$1.4B), resulting in a total market capitalisation of AU$13.7 billion  (US$10B). Freshworks, which was founded in India, has strong roots […]

SLIK Announces Four New Key Hires
  • Marketing
  • Media

SLIK Announces Four New Key Hires

Independent creative agency, SLIK, has made significant changes to its full service creative offering with four hires across management, creative and production.

How Retailers Can Maximise Their Results This Sales Season
  • Marketing
  • Technology

How Retailers Can Maximise Their Results This Sales Season

Black Friday Cyber Monday (BFCM) is the biggest player in the holiday shopping game and Google’s most recent research suggests consumer interest for the peak sales season starts much earlier than retailers may realise. The pandemic has fundamentally changed buyer behaviour over peak sales season, with Google suggesting that global consumer interest in Black Friday […]