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Funeral insurer’s Las Vegas competition contributed to staff misconduct behind spike in sales

A FUNERAL insurer under fire for “misconduct” in selling to the indigenous community offered top sales people trips to Las Vegas to stay at a “glitzy hotel”, the finance sector royal commission heard.

Incentives from funeral insurer prompted misconduct

A FUNERAL insurer under fire for “misconduct” in selling to the indigenous community offered top sales people trips to Las Vegas to stay at a “glitzy hotel”, the finance sector royal commission heard.

The competition at the Let’s Insure company — which has been accused of high-pressure sales tactics — also saw the winner get a $500 cash card to splash while in Vegas.

The competition promised: “A paid holiday to buzzing Las Vegas Nevada, USA, 24 hour casinos and endless entertainment options”.

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Let’s Insure managing director Russell Howden. Picture: AAP
Let’s Insure managing director Russell Howden. Picture: AAP

It ran from January to March 2016.

It was revealed earlier this week that Let’s Insure sales staff aggressively signed up Kathy Marika, a 60-year-old Aboriginal woman who struggled with a hearing problem and spoke English as her second language.

Asked by counsel assisting the commission, Rowena Orr, QC, if unethical salespeople would be sacked Let’s Insure managing director Russell Howden said that was determined by management.

Let’s Insure staff used aggressive sales tactics to sign up 60-year-old Aboriginal woman Kathy Marika. Picture: AAP
Let’s Insure staff used aggressive sales tactics to sign up 60-year-old Aboriginal woman Kathy Marika. Picture: AAP

“Depending on the nature of the call, it could be treated as grounds for dismissal,” he said.

Ms Orr also confronted Mr Howden about another sales competition, first revealed earlier this week, in which the top performer got a Vespa motor scooter.

“You accept that this incentive campaign was a contributing factor to the misconduct that led to the spike in funeral insurance sales to Aboriginal and Torres Strait Islander people in 2015,” Ms Orr asked.

“Correct,” Mr Howden said.

Mr Howden said the salesperson who sold to Ms Marika was dismissed.

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Original URL: https://www.heraldsun.com.au/news/funeral-insurers-las-vegas-competition-contributed-to-staff-misconduct-behind-spike-in-sales/news-story/5601d2d78535a2b7698ea3e31b46f655