ASIC clamps down on Australia's largest pet insurer over upfront vet expenses
- businessinadelaide
- Jun 30, 2023
- 1 min read
Australia's corporate watchdog has called out the country's largest pet insurer over concerns its products failed to meet the needs of the target market, such as requiring consumers to pay for veterinary expenses upfront in full before receiving a partial reimbursement under a claim.
The Australian Securities and Investments Commission (ASIC) has issued 38 interim stop orders relating to 67 pet insurance products issued by The Hollard Insurance Company Pty Ltd and its underwriting management agency subsidiary PetSure (Australia) Pty Ltd , which will be in place for 21 days and prohibit retail distribution to new customers.
The stop orders relate to pet insurance products issued by the insurers via brands including Woolworths, the RSPCA, Petbarn, Guide Dogs, Medibank, Bupa and HCF.
Deficiencies in the products' target market determinations (TMD) were behind the decision, representing the first action of its kind for insurance products under the design and distribution obligations (DDO) that dictate how financial products are set up to meet the needs of consumers.
ASIC made the interim orders to protect consumers from acquiring pet insurance products that may not be consistent with their objectives, financial situation or needs.
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