New Zealand has a notorious bullying problem – and while it has been an extensive issue in the schoolyard, it seems to take place in the work place, too.

You see, OUTsurance’s New Zealand subsidiary has come under fire for their sales people bullying potential customers.

Over there, the insurance company known as Youi was fined NZ$100,000 (R1 million) on Tuesday for breaching the country’s Fair Insurance Code. According to BDlive:

The breaches included debiting clients for nonexistent policies after Youi agents bullied them into divulging account details when they sought obligation-free quotes.

New Zealand’s Commerce Commission hauled the insurer to court in August for the same offences on 15 representative charges of misrepresentations made between July 2014 and February 2016.

Ridiculous. OUTsurance CEO Willem Roos said the fine was unexpected, and that the company had not provided for it in its annual results.

It should be noted though that $100,000 is not a material amount in the Youi and OUTsurance Holdings Group results.

The group – which is majority-owned by JSE-listed Rand Merchant Insurance (RMI) – has now had to improve its sales process, taking the matter “extremely seriously.”

Although less than 0.1% of Youi’s total sales were conducted in this inappropriate manner, the negative publicity of the company has affected its ability to expand and the group is focusing on breaking even. Roos continued:

No customer or prospective client has been disadvantaged in any way. Where monies were inappropriately deducted, refunds were processed speedily. Youi has unreservedly apologised to all affected clients, [and] disciplinary measures have been taken internally where appropriate.

However, an analyst, who would not be named in line with company policy, said:

The fine is of little financial consequence to either OUTsurance or RMI. There may well be an Australian fine in the works as well. The issue here is more about the damage that has potentially been done to the Youi brand. Some damage has been done but it seems to me that the company has dealt with the issue openly, which is to its credit.

Let’s just hope the negativity doesn’t extend back here – we have enough on our plate already.

[source:bdlive]