ASIC should impose a cap on the amount of commission that may be paid to vehicle dealers in relation to the sale of add‑on insurance products.
The Government agrees to provide ASIC with the ability to cap commissions that may be paid to vehicle dealers in relation to the sale of add‑on insurance products.
The value of the commissions paid in relation to add‑on insurance products sold through vehicle dealers has significantly exceeded the amounts paid out to consumers through claims. High levels of commissions have contributed to poor consumer outcomes.
Providing ASIC with the ability to cap commissions will ensure an appropriate cap is set and varied if required in response to any future concerns.