Submission to the ACCC re: Aioi Nissay Dowa Insurance Company Australia Ltd & Ors applications for authorisation A91556-A91557

The ACCC sought input on an application by insurers for authorisation to cap commissions on add-on insurance sold through motor vehicle dealerships at 20% of premiums. Financial Rights’ recommends that the authorisation be denied unless it is enhanced by:

1. it includes a ban on single premium policies;
2. it unbundles the sale of add-on insurances from the sale of loans;
3. includes a ban on the sale of life (trauma) insurance in dealerships;
4. limits commissions to a lower level (say 10 per cent).