Embattled company Freedom Insurance has reached an in-principle deal to sell its policy administration business for $5 million.
Freedom Insurance came under intense criticism at the banking royal commission for its high-pressure sales tactics, which has effectively destroyed its business model. In a statement to the ASX, the company indicated that the price would have been higher had it not been for"clawbacks" of trail commissions and"remediation of customers who may have suffered financial detriment".The company also said there were plans to sell its Spectrum Wealth Management business, after which it"will have exited all its operating businesses".
Furthermore, it said the funds would be used to"pay creditors, wind down its remaining operations and meet any financial regulatory obligations".It was revealed at the inquiry that Freedom aggressively sold policies over the phone to those who did not require them — including