Youi Insurance has landed itself in hot water by putting sales figures ahead of customer interests.

According to ASIC, this occurred because the insurance company was offering incentives and bonuses to staff based on sales. This in turn resulted in many customers being signed up for insurance products without their knowledge or consent.

The outcome is that Youi has had to repay approximately $14,000 in total to around 100 affected customers. The company will also be required to pay a $150,000 community benefit payment to the insurance law service of a financial rights advocacy group.

Youi has undergone an audit and has now revised its staff incentive schemes and introduced stricter compliance controls. The company will also undergo a follow-up review later in the year.

It is important to recognise that insurance brokers are very different to direct sales insurers. Your Reliance Partner Broker exists to represent your best interests and is not motivated by sales incentives and bonuses. A good insurance broker will always consider your needs and provide you with the most appropriate balance of protection and price. Reliance Partners follows the strict Code of Practice set down by the National Insurance Brokers Association (NIBA) which promotes client benefit before all else.     

 

Base Source: http://asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-411mr-youi-pays-164-000-for-poor-insurance-sales-practices/

https://www.niba.com.au/html/