Major brands have been banned from selling pet insurance products after the financial watchdog deemed they may not have properly considered the financial situation of its customers.
PetSure and Hollard provide insurance to the brands and the stop orders relate to 67 of its products.
ASIC is particularly concerned about pet insurance owners’ ability to pay for veterinary expenses in full and upfront before receiving a partial reimbursement or claim.
“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,” the commission said.
“ASIC was concerned that the insurers failed to appropriately define the target market for these products using objective and tangible parameters.”
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The ban will be in place for 21 days “unless revoked earlier”.
ASIC is considering more stop orders for other insurance products.
“ASIC will consider making a final order if the concerns are not addressed in a timely manner.
“The insurers will have an opportunity to make submissions before a decision is made about any final stop orders.”
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