The Australian Securities and Investments Commission (ASIC) has secured more than $102 million in remediation for Freedom Insurance customers who were, or may have been, mis-sold insurance between 2010 and 2018.

The regulator says more than 83,600 Freedom consumers were targeted by “harmful sales practices” to sell funeral, accidental death, and life insurance policies revealed during the Hayne royal commission hearings in 2018.

ASIC took action after the findings, including banning “cold call” telephone sales of direct life insurance in 2019, and commenced legal action against the former MD of Freedom Keith Cohen and ex-Quality Control Manager Robert Oayda last October.

ASIC Deputy Chair Karen Chester says the regulator believes there still may be thousands of affected customers who are likely entitled to a refund but have yet to claim it.

“We encourage Freedom Insurance customers from between 2010 to 2018 who believe they were mis-sold a policy, or who tried to cancel their policy without success, to contact their insurers and be assessed for remediation,” Ms Chester said.

Consumer Action Assistant Policy and Campaign Director Cat Newton raised concerns about the poor outcomes for people who have yet to receive compensation.

“This scheme was supposed to clean up the mess created by Freedom’s appalling pressure selling tactics – and it’s disappointing that they have failed to find everyone entitled to a refund,” Ms Newton said.

“We’re concerned that people who tried to navigate this poorly run remediation program alone may not have got fair – or any – compensation at all.”

Ms Newton described the situation as a “decade-long disgrace,” saying unsuspecting customers were “flogged” with “junk funeral insurance policies” by problem sales tactics and provided a “woeful” remediation program.

She called on recommendations provided by ASIC’s 2017 Enforcement Review to give the regulator increased powers to take action.

“A directions power would empower ASIC to require a remediation program to be established and ensure that it is comprehensive and effective. This might prevent this sort of mess in the future”, said Ms Newton.