BREAKING NEWS: Insurer Youi under under ASIC investigation

BREAKING NEWS: Insurer Youi under under ASIC investigation

BREAKING NEWS: Insurer Youi under under ASIC investigation Accusations of dodgy sales tactics and defrauding customers have been levelled against Youi in Australia, mirroring recent charges laid against the company’s New Zealand branch.

The South African insurer is now under investigation by the Australian Investment and Securities Commission (ASIC), according to a Fairfax report which was triggered by the media company’s own investigation.

Fairfax says it has spoken to five whistleblowers during a six-month investigation. The whistleblowers say the company culture encouraged sales staff to defraud potential customers on a large scale by billing them for policies they never signed up for.

They also said the customers were having claims rejected due to a ‘cult-like’ corporate culture that pushes staff to falsify insurance documents to make sales. That then leaves customers paying for policies that don’t actually cover them.

“I started in sales, and I witnessed managers changing data, changing the colour of cars, changing insurance history,” said one whistleblower.

“The whole thing makes me sick. It’s all a big cover-up.”

A Youi spokesman said “while the company has not been advised of any specific investigation by ASIC regarding this matter ... it will certainly assist with any and all inquiries,” according to The Courier Mail.

Fairfax has also spoken to several customers who say Youi took money from them without authorisation.

According to the Fairfax report, the whistleblowers claimed the call centre in Australia actually made many of the illegal phone sales made in New Zealand.

Youi’s New Zealand arm pled guilty to misconduct charges filed by the New Zealand Commerce Commission this month, and the Insurance Council of New Zealand (ICNZ) said it would consider whether to terminate Youi’s membership at its next board meeting.

The story originally emerged in March 2016 following Kiwi investigative journalist Diana Clement’s in-depth expose.

Since the New Zealand revelations, the atmosphere inside the company had become highly paranoid, Fairfax reported, with staff warned regularly of likely penalties if they speak to the media.

Youi maintained the company was committed to ‘conducting business with the highest standards of personal and corporate integrity’ and had apologised unreservedly after the NZ charges were laid.
  
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14 Comments
  • Shane M 29/08/2016 9:46:58 AM
    They come into the market making out that they're the consumer's friend, and turns out they are just screwing the customers worse than anyone else.

    Companies like these are the ones giving insurance a bad name. This should be a great opportunity to show the benefits of using a broker, but instead we'll probably all just be tarred with the same brush.
    Post a reply
  • FNQ Broker 29/08/2016 10:01:55 AM
    Hmmm.....we've been trying to tell the general public this for years. No surprises here!
    I doubt if ASIC will need to dig too deep to obtain the dirt on Youi based on our market research this behaviour is endemic. I wonder how all the "named household" pets are feeling about this turn of events.
    Post a reply
  • Sam 29/08/2016 10:39:05 AM
    This is the danger of low cost online and over the phone models.

    In 10 years time tables will turn and people will return to broking as these online models will pose these type of risks for consumers.
    Post a reply