According to ASIC, Choshi has promoted the Hanover issue policy primarily since July 2019, with only one exception for the entire period.
The Australian Securities and Investment Commission (ASIC) has launched a process against insurance comparison service Choosi, denounced misleading consumers.
According to ASIC, insurance company Hannover paid the committee, which cost around $61 million between 2019 and 2024, to promote insurance products only.
Regulators say during this period Choshi was responsible for selling 4,225 funeral insurance contracts and 9,478 life insurance contracts.
The ASIC vice-chairman, Sarah Court, said the enforcement action is intended to protect consumers who try to find the best insurance deal.
One insurance company behind the fantasy of choice
ASIC claims that since mid-July 2019, Chousi has primarily compared policies issued by Hanover, with only one exception being compared during the overall period.
Hannover, a global insurance provider, operates two Australian entities. One is real estate and victim insurance, and the other is life and health insurance. ASIC says a $61 million fee was paid to ensure only Hannover’s offerings were advertised on the site.
“We argue that people have been led to believe that they are making wise decisions by comparing policies, but they have been denied a real choice,” the court said in a statement.
Funeral insurance products on Chosi’s website are listed under three separate brand names, but ASIC says they are all undertaken by Hanover.
Similarly, Choosi compares five life insurance policies, which are clearly visible but issued by Hannover. This will be excluded for a short period of time by July 2023, when one additional insurance company was included.
ASIC says all policies were distributed by Greenstone Financial Services, a company belonging to Choosi.
“What we’re looking at here is the Choosi platform that Hannover actually uses as just a platform for distributing its products, and it’s not continuing to compare it with other insurance companies at all,” the court said.
She added that the promotional campaign was broad and long-term.
“I know this is a very extensive advertising campaign by Chousi over the years…and I know there were thousands of policies sold,” she said.
ASIC criticizes the company for presenting misleading information on multiple platforms, including Choosi’s website, social media, television commercials and ads.
Between July 1, 2019 and November 30, 2024, Choshi is said to have sold thousands of policies under the arrangement.
The court emphasized that if a federal court rules in ASIC’s favor, “it will be important for (ASIC) to seek substantial penalties.”
