ASIC secures over $102 million in remediation for Freedom Insurance customers, with more to come
ASIC has now secured over $102 million in remediation for around 83,600 customers who were, or may have been, mis-sold insurance policies over the phone by Freedom Insurance Pty Ltd (Freedom Insurance) between 2010 and 2018.
ASIC is encouraging Freedom Insurance customers from between 2010 and 2018 to come forward to see if they are eligible for a refund.
ASIC identified the harmful sales and retention practices of Freedom Insurance in its 2018 review of the sale of direct life insurance. The conduct was subsequently highlighted as a case study during the Financial Services Royal Commission. In response, ASIC:
announced the implementation of a ban on the unsolicited ‘cold call’ telephone sales of direct life insurance and consumer credit insurance in 2019 (19-335MR);
commenced civil penalty proceedings in the Federal Court in 2021 against both the former Managing Director and former Quality Assurance Manager of Freedom Insurance in relation to the sales incentive programs offered by Freedom Insurance (21-279MR);
has secured a significant remediation program for customers. Currently, over $102 million has been paid, or assessed as due to be paid, to around 83,600 customers adversely affected by the conduct of Freedom Insurance.