THE COMMISSIONER: Now, I think the witness has not affirmed the content of them, has he? I think he has not. MR CHESHIRE: I am not sure THE COMMISSIONER: It might be as well to begin with that. MR CHESHIRE: I am to have him do so. Those statements, are the contents of them true to the best of your knowledge, information and belief?Yes, they are. Thank you. Thank you, Commissioner. THE COMMISSIONER: Yes, thank you, Mr Martin. Yes, Ms Orr. <CROSS-EXAMINATION BY MS ORR [11.52 am] MS ORR: Mr Martin you’ve held the position of chief actuary and risk officer for the ClearView Group since 2011 when you joined ClearView?That’s correct. And you worked in the life insurance and wealth management industry before that time with a total period of working in that industry of 36 years, you tell us?Correct, yes. And your work has predominantly been in actuarial roles. Is that right?Correct. You’ve been put forward by ClearView to answer questions in relation to ClearView’s life insurance business?That’s correct, yes. What is your role as chief actuary for the ClearView Group involve?Well, chief actuary and risk officer my role is concerned, really, around financial management of the group, actuarial concerns and broad risk management across the group. So I am not quite sure how far you would like me to go on that statement. I would like to understand the difference between your role as chief actuary and your role as chief risk officer?There is an element of overlap. As actuary or chief actuary I am mostly concerned around the broad financial management of the group. So product pricing, profitability, capital management and – and reserving for the – for the group, although in terms of the life company itself there is an appointed actuary who has specific responsibilities for the actuarial role within the life company. For the risk management function it really goes to broader oversight of the risk management framework for the group which goes from the financial advice business across the life company and into the funds management business, everything from interest around reinsurance strategies through to operational risk, strategic risk and suchlike.
Well, that report has been out for a couple of weeks. I assume it’s a report that has been the subject of some detailed consideration within your business?I – I – sorry, I’ve been absorbed in the last week with just preparing for today, Ms Orr. So I haven’t been able to talk to other people about it. Well, the two are not mutually exclusive, are they, Mr Martin? You’ve been preparing to come and speak to us about these very topics?I appreciate that, yes. But you’re unable to say anything further about the position that ClearView will take in relation to the sale of accidental death products going forwards?At this stage, I – I don’t know. As I said, our – our intention – as far as I know, the intention of ClearView is not to offer rubbish products to the market. So if that’s what they’re deemed to be, that will be stopped. Perhaps that’s a convenient time, Commissioner. THE COMMISSIONER: 2 pm, Ms Orr? MS ORR: Yes, you, Commissioner. THE COMMISSIONER: Adjourn till 2 pm. ADJOURNED [1.00 pm] RESUMED [2.00 pm] THE COMMISSIONER: Yes, Ms Orr. MS ORR: Mr Martin, in your statement you deal with two sets of concerns that ASIC has raised with ClearView in recent years, both of which relate to the direct sales of life insurance. Concerns, firstly, about whether ClearView was complying with the requirements of the Corporations Act in relation to unsolicited sales, and secondly concerns about whether ClearView was engaging in unfair sales practices?Correct. And ASICs concerns on both of those fronts have led to ClearView developing a customer remediation program?Correct. And that program is not yet complete?No, it’s very close. When will it be complete?Probably by the end of November. Or most certainly by the end of the year.
EXHIBIT #6.13 WITNESS STATEMENT OF SEAN MCCORMACK 21/08/2018 P-5298 EXHIBIT #6.14 WITNESS STATEMENT OF ROSS BARNWELL 03/09/2009 P-5298 EXHIBIT #6.15 GEOFFREY ROGERS 03/09/2018 P-5298 EXHIBIT #6.16 WITNESS STATEMENT OF SUSAN HOUGHTON DATED 07/09/2018 P-5298 EXHIBIT #6.17 WITNESS STATEMENT OF MICHAEL WRIGHT DATED 23/08/2018 P-5298 EXHIBIT #6.18 WITNESS STATEMENT OF TIM BAILEY 21/08/2018 P-5299 EXHIBIT #6.19 WITNESS STATEMENT OF CHESNE STAFFORD DATED 21/08/2018 P-5299 EXHIBIT #6.20 WITNESS STATEMENT OF HELEN TROUP DATED 21/08/2018 P-5299 EXHIBIT #6.21 MARIA LYKOURAS DATED 21/08/2018 P-5299 EXHIBIT #6.22 WITNESS STATEMENT OF MARK BALLANTYNE DATED 21/08/2018 P-5299 EXHIBIT #6.23 WITNESS STATEMENT OF HUGH HUMPHREY DATED 21/08/2018 P-5300 EXHIBIT #6.24 WITNESS STATEMENT OF GAVIN PEARCE DATED 21/08/2018 P-5300 EXHIBIT #6.25 WITNESS STATEMENT OF CHRISTOPHER McHUGH DATED 27/08/2018 P-5300 EXHIBIT #6.26 WITNESS STATEMENT OF GREGORY JOHNSON DATED 10/09/2018 P-5300 EXHIBIT #6.27 SUMMONS TO MR MARTIN P-5305 EXHIBIT #6.28 STATEMENT OF MR MARTIN IN RESPONSE TO RUBRIC 6.21 DATED 21/08/2018 P-5305
EXHIBIT #6.44 EMAILS CONCERNING ASIC REVIEW BREAKDOWN 28/06/2016 (CVW.8000.0002.9179) P-5352 EXHIBIT #6.45 EMAILS CONCERNING GROUP COMPLIANCE REVIEW, ASIC INJURY CASH CALLS (CVW.8000.0002.9176) P-5354 EXHIBIT #6.46 RISK AND COMPLIANCE COMMITTEE FEBRUARY 2017 RESULTS (CVW.5000.0001.2893) P-5357 EXHIBIT #6.47 BUPA INJURY CASH INSURANCE SCRIPT (ASIC.0052.0004.0594) P-5364 EXHIBIT #6.48 EMAIL DATED 26/11/2015 CONCERNING SCRIPT COPY AND ATTACHED SCRIPT (CVW.5000.0001.3231 AND ITS ATTACHMENT) P-5368 EXHIBIT #6.49 EMAILS DATED 03/12/2015 CONCERNING SCRIPT (CVW.8001.0001.0181) P-5369 EXHIBIT #6.50 EMAILS DATED 18/12/2015 BETWEEN COSHOTT, ELLIOTT AND JULIUS (CVW.8001.0001.0252) P-5370 EXHIBIT #6.51 INBOUND SALES WORKSHOP SESSION 3, OBJECTION HANDLING (CVW.5000.0003.5394) P-5373 EXHIBIT #6.52 CLEARVIEW INJURY CASH INSURANCE CONVERSATION TRIGGERS (CVW.5000.0003.0614) P-5375 EXHIBIT #6.53 RECORDING OF SALES CALL (ASIC.0069.0001.0158) P-5376 EXHIBIT #6.54 TRANSCRIPT OF THE SALES CALL, EXHIBIT 6.53 (ASIC.0069.0001.0357) P-5376