It has been reported today that Insure 247 were rapped over the knuckles by ASIC over their online marketing of insurance.
In a statement released by ASIC it was revealed that four of the websites operated by Insure 247 were believed to contain “misleading or deceptive advertising”.
That’s a pretty serious allegation, but it appears that the parties involved have been able to make the necessary changes to the websites without too much drama.
There were two main issues involved.
The statement from ASIC shows that they had serious concerns with some of the text used on the websites:
“ASIC was concerned the websites gave the impression consumers were accessing an online tool which compared the features and the cost of different insurance products. ASIC’s review found there was no evaluation or comparison of the products.”
One such example was the text “compare thousands of insurances from fifty different insurers”, but upon investigation there was no such comparison offered.
In my opinion this was probably just a copywriter getting a little over excited, but the fact is you simply cannot make claims on an insurance related website unless they are factual.
Insure 247 are not alone however, as over the years I’ve seen plenty of misleading text on insurance related websites.
I don’t think there is a deliberate intention to mislead people in most cases, but if someone can be misled then it doesn’t really matter whether it was deliberate or not.
Insurance company logos
The second issue was the use of insurance company logos, which ASIC made the following comments about:
“Further, ASIC found Insure 247 displayed the logos of insurance providers that were not offering quotes for the product featured on that page of the website. For some insurance products, only one insurance provider received consumer details through the website when consumers were likely to think their details would be passed on to many insurers.”
Using the logos of the big insurance companies is a great way to build some credibility for a financial adviser or insurance broker’s website.
There is nothing wrong with doing so, and I even have a selection of logos on my own firm’s website, but don’t go displaying logos of insurance companies if you don’t use them!
It’s fair enough for a consumer to expect that if they see certain logos on your website then you’ll be using or at least comparing the products offered by those insurers.
The lesson here for website owners, regardless of whether you’re an AFSL holder, an authorised representative or just an online marketer, is that you need to make sure your website does not have the potential to mislead or deceive.
3 thoughts on “ASIC targets insurance websites”
When are people going to wake up to the danger these websites pose to consumers and to our industry? They should be shut down, not just given a tiny slap on the wrist.
Whilst I don’t necessarily agree that they’re a danger and should be shut down, as a financial adviser it would be nice if we didn’t have sites like these as our competition. The fact is that they are here to stay, and we just need to do better to get our insurance value proposition across to clients.
I’m just glad that their are insurance regulators like the ASIC. If it wasn’t for them some marketing firms would go nuts with their misleading insurance lingo!