ASIC is seeking to ban “cold call” sales pitches for life and consumer credit insurance.
The corporate watchdog said banning unsolicited telephone sales of direct life and funeral insurance – as well as consumer credit insurance – would better prevent consumers paying for products they do not need, want or understand.
ASIC commissioner Sean Hughes said the ban was consistent with the Financial Services Royal Commission recommendations, and would provide consumers with further protections from mis-selling practices now, ahead of wider law reform by government.
“It is only fair that consumers have a proper opportunity to consider which insurance product best meets their needs and then compare alternative products, without feeling pressured to make a purchase,” Mr Hughes said.
The federal government has already committed to implementing a recommendation to prohibit unsolicited sales of superannuation and insurance products.
ASIC is seeking feedback on its proposal.