The Australian Securities and Investments Commission (ASIC) expects to take further action following its investigations into funeral insurance.

The warning comes after the regulator raised concerns with Hollard subsidiary Real Insurance, which has now agreed to change its advertisements.

ASIC says it is closely reviewing funeral insurance advertising “and is looking at taking regulatory action in relation to other matters”.

It also plans more scrutiny of the way the cover is marketed, after finding gaps in consumers’ understanding of the product.

Real last week announced it would relaunch its product and change its advertising amid concerns of insufficient information on premium increases and inadequate qualifications about price.

Advertisements will now include prominent disclosure that premiums increase with age and show key assumptions used in pricing.

They will disclose risks, including that consumers may pay more than the benefit they gain and that they are not entitled to a premium refund if they cancel.

The company has also agreed to use imagery that is consistent with other representations made relating to price.

Hollard Financial Services GM John Roche says the company has reviewed the product, reduced premiums across most age ranges and frozen increases once policyholders turn 80. It has also renamed the product.

ASIC Deputy Chairman Peter Kell says Hollard engaged constructively on the matter.

The regulator commissioned a study of funeral insurance last year that found advertising on daytime television is an important factor in consumers deciding to buy it, but many people are confused about key aspects of the cover.