Life insurer terminates cold calling

LIFE insurer Freedom Insurance Group has confirmed it will stop cold-call sales for a range of insurance products and discontinue its use of a call centre.

In a statement issued to the ASX yesterday, Freedom said its board had agreed to cease outbound sales of its term life and trauma insurance, along with a previously announced suspension of marketing its loan protection cover, later in September.

The insurance products accounted for 13 per cent of Freedom’s sales in 2017/18, the company said. “The impact of these changes on sales and earnings in the current financial year is uncertain,” it said.

At his appearance before the banking Royal Commission on Wednesday, Freedom’s chief operating officer Craig Orton advised the company had ceased outbound sales of accidental death and accidental injury insurance in August. The embattled insurer says it will also be terminating its contract with external call centre Peak bound Holdings.

Freedom says it has appointed auditing firm Deloitte to assist with a review into its business strategy, structure and sales practises. The company’s share price, which has tumbled 26% during the past two days, closed at 11c.