ASIC has announced that it has sued insurance comparison provider Choosi Pty Ltd for allegedly misleading prospective customers through its funeral and life insurance comparison services.
ASIC claims that Choosi breached sections 12DB and 12DF of the Australian Securities and Investments Commission Act 2001 (ASIC Act) between 1 July 2019 and 2 June 2025 by making statements that conveyed that Choosi compared funeral and life insurance policies from a range of insurers when in fact it only compared policies issued by a single insurer (with one limited exception).
ASIC claims that the Choosi comparison service was actually a distribution platform for funeral and life insurance policies issued by Hannover Life Re of Australasia Ltd (Hannover), from whom Choosi received substantial sales commissions.
All policies were distributed by Greenstone Financial Services Pty Ltd, a company associated with Choosi.
ASIC alleges that at least 4,225 funeral insurance policies and 9,478 life insurance policies were sold during this period, with Choosi receiving $61 million in commissions.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
