CommInsure conviction sends a “significant message” to the industry
On Thursday, Comminsure was hit with a $700,000 fine and convicted of 87 counts of hawking offences.
The conviction and fine followed the insurer’s guilty plea to the charges in mid-November.
“The conviction and sentence today send a significant message to the financial services industry,” ASIC deputy chair Daniel Crennan said.
“The model operated by CommInsure carried risks for consumers due to the unsolicited sale of complex insurance products which consumers may not have needed, wanted or understood’, he said.
The sentence takes into account the insurer’s early guilty plea to the charges, which carried a maximum total penalty of $1.8 million.
If the conduct were to occur under the new penalty regime - effective from March 2019 - the maximum penalty would be nearly $11 million.