Choosi, a comparison website, is currently facing legal scrutiny from the Australian Securities and Investments Commission (ASIC) due to accusations of misleading customers who are in search of insurance options. The company claims on its website and in advertisements that it compares life and funeral insurance products from several well-known insurers. However, ASIC has initiated proceedings in the Federal Court, alleging that the platform has misled potential customers regarding the breadth of its comparisons.
According to ASIC, between July 1, 2019, and the present (with some exceptions), Choosi has predominantly compared insurance policies from only one provider: Greenstone Financial Services, a company with ties to Choosi. The corporate regulator states that, during this timeframe, over 4,200 funeral insurance policies and nearly 9,500 life insurance policies were sold, resulting in around $61 million in commissions for Choosi.
In response to the allegations, Choosi has indicated that it is in the process of reviewing the claims and intends to take appropriate action moving forward. The company has also expressed its commitment to implementing any necessary changes to better serve its customers.