The Commonwealth Bank’s insurance arm, CommInsure, has been charged today with 87 counts of hawking life insurance products.
As Commissioner Hayne found in the Banking Royal Commission, selling complex insurance products through hawking allows “the fraudulent or unscrupulous to prey on the unsuspecting”.
These are not new concerns – issues were identified by ASIC well before the Royal Commission brought us the story of a young man with Down’s Syndrome being pressured into purchasing life insurance by immoral hawkers.
The Government has a dismal record when it comes to the banks.
Scott Morrison and the Liberals voted against the Royal Comission 26 times and are dragging its feet on implementing the Commission’s recommendations – including key anti-hawking recommendations.
Stephen Jones, the Shadow Minister for Financial Services, wrote to the Treasurer, Josh Frydenberg in August offering support to bring that legislation forward. Today he renewed that call.
More than six months after the report, Josh Frydenberg is yet to bring forward legislation that will close these gaping loopholes.
Scott Morrison has said he won’t give a leave pass to the banks but by dragging his feet on anti-hawking legislation, he’s doing just that.
FRIDAY 4 OCTOBER 2019