A cold-calling ban on the sale of insurance has been proposed by top lawyers from Australia’s royal commission on banking, insurance and superannuation, reports local newspaper Sydney Morning Herald.
Following weeks of hearings, a document has been compiled that sets out the wider policy questions that were raised during the court sessions.
The document was prepared by counsel assisting the commission and published on Wednesday.
Among a series of proposals, the document asked: “Should the direct sale of insurance via outbound telephone calls be banned? If not, is the current regulatory regime governing the direct sale of insurance via outbound telephone calls adequate to avoid consumer detriment?”
International moves
The ban would likely have a big impact, as outbound call centres are critical to several direct life insurance distributors, according to SMH.
If Australia was to move for a ban it would be one step ahead of the UK, which has long-delayed a similar approach to its pensions industry.
The measure would be supported by regulator the Australian Securities and Investments Commission (Asic), which called for a similar move in August.
