Interim stop orders for Hollard and PetSure

The Australian Securities and Investments Commission (ASIC) has issued interim stop orders of up to 21-days for 67 pet insurance products. According to the regulator’s media release, the target markets determinations for the Hollard Insurance and PetSure products have “deficiencies.”

The stop orders concern pet insurance products issued by the insurers through brands including Woolworths, RSPCA, Petbarn, Guide Dogs, Medibank, Bupa and HCF.

“ASIC made the interim orders to protect consumers from acquiring pet insurance products that may not be consistent with their objectives, financial situation or needs,” said the release.

The regulator said the insurers did not “properly consider” that consumers must pay for veterinary expenses upfront and in full before receiving a partial reimbursement under a claim.

While the temporary stop orders are in place, insurers cannot sell the products to new customers. ASIC said it expects the insurers to take immediate steps to ensure compliance. 

STORY UPDATE:

In response to this story, a PetSure spokesperson reached out to Insurance Business and provided this statement:

“PetSure and Hollard have temporarily paused new policy sales for some insurance products as a result of ASIC concerns regarding target market determination (TMD),” said the spokesperson. “PetSure is committed to swiftly resolving these concerns by working constructively with the regulator in relation to the TMD. Existing customers can make pet insurance claims as normal.”