Ms Orr questions Mr Whelan about the poor performance of add-on insurance, that people have been pressured into sales, they have represented poor value and commissions paid out were higher than benefits received by consumers.

“Is any of that acceptable Mr Whelan,” Ms Orr asks.

“Not at all,” he says.

Ms Orr also asks what this says about the culture of the general insurance industry.

Mr Whelan notes that the Insurance Council and members, along with ASIC, have taken steps to improve the outcomes.

Ms Orr suggests that there is a culture of making money ahead of meeting the needs of consumers and there was a lack of oversight of intermediaries.

Mr Whelan acknowledges the problem in the case of add-on insurance sales through caryards.

“There was an issue as to how those intermediaries were trained and monitored,” he says.