Youi to pay back $164,000 over sales practices
Youi will pay $164,000 in compensation for its poor sales behaviour, as CEO Frank Costigan vows to avoid a repeat of the lapses.
The insurer has already refunded $14,000 to 102 affected consumers, and will make a $150,000 community benefit payment to the Financial Rights Legal Centre’s Insurance Law Service, according to the Australian Securities and Investments Commission (ASIC).
Youi has also made several changes recommended by independent consultant EY, which was engaged to examine sales processes amid concerns consumers were being billed for policies without their consent. Changes include reducing incentives for sales volumes and new controls to oversee the sales team.
EY will conduct a follow-up review of Youi’s risk culture and sales practices, and provide ASIC with a final report by next June 30.
“Youi is disappointed a small number of our customers had an unsatisfactory experience and we sincerely apologise to those customers,” Mr Costigan said.
“We have worked closely with ASIC and… EY to complete comprehensive reviews of our systems and processes and have made changes to try to ensure the historical issues won’t happen again.”
Similar issues have dogged Youi in New Zealand, and the insurer was fined a maximum $NZ100,000 ($90,364) by the Insurance Council of New Zealand last year.