An ASIC crackdown on the supermarket giant’s entry into insurance is just the latest example of a broker’s importance, says NIBA.
ASIC has forced Woolworths to change ads for its direct car insurance product after deeming them “misleading”.
The ads, which appeared online, on buses and in outdoor marketing, claimed its customers saved an average of $240, without adequately explaining the Woolworths policies could feature a lower agreed value for customer’s cars.
ASIC Deputy Chairman Peter Kell says: “When comparing products in an ad, the products should have sufficiently similar features to make the comparison relevant and not misleading.”
NIBA CEO Dallas Booth says: “This experience shows how easy it is for the consumer to get misleading information about the nature of the cover, terms and conditions, and how the policies actually operate if a claim arises.
“It underscores yet again the important role of brokers as sources of advice on these critical matters.”
Earlier this year an online car insurance calculator was shut down after ASIC branded its content potentially misleading.