Youi under fire amid claims of aggressive sales tactics and customers being billed without consent

Customers continue to flock to social media to complain about customer service and policies at insurer Youi after two Fairfax reports detailed allegations that the insurer has billed customers without consent.

The reports allege the company encouraged staff members to bill customers for policies they had not formally signed up for. The story marks another controversy in Australia’s insurance industry this year, after stories like that of life insurance provider CommInsure stopping policy payouts hit the media in March.

Youi has said in a statement that it “vehemently denies” claims that management would condone sales staff processing policies without customer’s knowledge, and has confirmed that where there was enough information to follow the complaints raised in media reports, those complaints have been resolved.

Since publishing the first report on Saturday, Fairfax media reportedly received more than 100 further messages from customers claiming Youi had chased them with aggressive cold calls, refused to cancel policies or signed them up to policies without consent.

This morning several customers have contacted the company on the Youi Facebook page, complaining about poor customer service and expressing disappointment in the reports.

“As a policyholder I would expect more ethical behaviour from a company trading on a brand ‘we get you’,” said one comment writer.

John Price, lead ombudsman of general insurance at the Financial Services Ombudsman, told SmartCompany many Australians don’t sit down and read insurance policies in detail and that there was still a need for better disclosure from insurers.

“We see disputes for all kinds of things, from denial of claims to policy interpretation, but at the end of the day I think we all have to work together on this one,” he says.

“When negative reports about the insurance industry happens it really just shakes the confidence of consumers in the industry. The financial system inquiry has already called for better disclosure on the part of insurers.”

The Youi allegations is a damning reminder that it’s almost impossible to come back from stories about unethical sales practices, says Sue Barrett of sales advisory Barrett.

“The alleged conduct that we are hearing about is utterly pre-historic,” she says.

“I don’t even know what planet they think they’re on.”

Barrett believes poor practices around sales incentives can be incredibly damaging to a business in the long term – and that it’s important for businesses to remember that competitive sales styles are a dangerous game when it comes to having the customer’s best interests at heart.

“If you pit sales staff against each other, they don’t have the customer’s best interests,” says Barrett.

“Most sales staff want to do the right thing, but if you create an environment where there is intense competition against each other, this drives behaviour down to the lowest common denominator.”

Brand names can also be forever tarnished by stories of poor salesmanship.

“The slogan [‘We get you’] and the name of the company can now be seen as false advertising. It’s going to have a drop in sales either way – people will not forget about these things in a hurry,” Barrett says.

SmartCompany contacted Youi and received a comment from management after this article was originally published. A spokesperson said that customer each complaint is delegated to a specific person to resolve with a customer and that Youi regularly reviews complaint categories to ensure corrective action is taken.

Trending

COMMENTS

Subscribe
Notify of
guest
4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Jan Deane
Jan Deane
4 years ago

Will definitely cross them off the list when getting quotes.

KM
KM
4 years ago

Ironic that there is a Youi ad beside this article.

PJF
PJF
4 years ago

Woolworths do similar. 2nd year they automatically renew and take money from card given when originally doing policy. No clear offer to renew and they keep credit card on file without telling you. If you don’t check your bank statements you would never know!

Lee
Lee
4 years ago

Advised them that I didn’t want to renew my policy, with 4 weeks notice. Started getting texts and emails from them to ring them. Emailed again that I wasn’t renewing. Originally paid for the policy with a one off visa card payment, so I thought. Surprise, surprise they have taken a renewal amount from my card. They have said that it will take 2-5 days to reverse and that they won’t charge a cancellation fee!! The paperwork that they have now sent through is $35 short of what they have “stolen”.