This essay examines the conduct of Freedom Insurance Group Ltd following the Australian Royal Commission into the banking and financial services industry. The essay begins by outlining the key observations made by the Royal Commission, particularly the connection between employee conduct and rewards, information asymmetry, conflicts of interest, and market freedom exploitation. It then focuses on Freedom Insurance, detailing its inappropriate behaviors, including lack of documentation, poor quality assurance, and failure to hold employees accountable for misconduct, such as the sale of insurance policies to vulnerable customers. The essay assesses Freedom Insurance's practices through a socially responsible framework, highlighting the company's decline in market share and shareholder wealth following the Royal Commission's findings. It emphasizes the importance of sustainability and socially responsible outcomes for the company. Finally, the essay identifies and evaluates the changes implemented by Freedom Insurance in response to the Royal Commission's report, including executive changes, suspension of direct sales, employee accountability measures, and operational restructuring, concluding with a discussion on the permanence of these changes. The essay utilizes various sources to support its claims, including the Royal Commission's final report and Freedom Insurance's investor reports.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
