The Australian Securities and Investments Commission says “low-value” life products will be a focus area as it steps up scrutiny of the industry in coming months.

ASIC has outlined its priorities in its 2024-25 corporate plan, listing insurance misconduct as one of several key issues.

The regulator says it will “continue to review direct sales of life insurance products, with a focus on low-value products”. 

It will produce a short report on its findings and engage with identified organisations to help drive behavioural change.

The plan says the regulator will also act on harmful product design and distribution practices, including those that result in consumers buying unsuitable products, particularly in relation to life insurance.

“When we have looked at the sale of life insurance directly to consumers in the past, we have identified issues with sales practices and outcomes for consumers,” commissioner Alan Kirkland told insuranceNEWS.com.au. “For example, where consumers sometimes bought products they did not want, could not afford, or that did not meet their needs.

“We will be examining the degree to which current sales practices are helping to ensure consumers get products that are appropriate their needs.”

See the corporate plan here.