The Australian Securities & Investments Commission (ASIC) recently established the Consumer Credit Insurance (CCI) Working Group.
CCI is a type of add-on insurance sold with credit cards, personal loans, home loans and car loans. CCI is promoted to borrowers to assist them with repayments in case of job loss, injury or death.
In ASIC’s view, CCI has “long been associated with poor consumer outcomes in Australia and overseas”. The Working Group has been established to improve consumer outcomes and banks have already committed to a number of measures to improve them.