Recent news articles have reported allegations that some Wells Fargo customers may have received insurance policies without their knowledge. The products in question include Prudential’s MyTerm life insurance product and a renter’s insurance product — both available to Wells Fargo customers through distribution agreements with Wells Fargo.
The company is reviewing the allegations to determine the facts and has suspended referrals of both products until the review is concluded.
“We understand the serious concerns that have been raised with these latest accusations, and will work to get to the bottom of this issue as quickly as possible,” said Chief Financial Officer John Shrewsberry. “If improper conduct is found, we will take action and make things right with customers.”
MyTerm is a simplified issue term insurance product from Prudential that was created to give customers greater choice and access to life insurance through a self-assisted, technology-enabled application process. Prudential entered into a distribution agreement with Wells Fargo, whereby the MyTerm product was made available to Wells Fargo customers through self-service kiosks in Wells Fargo bank branches and its website.
Renters insurance provides coverage to belongings for renters as well as personal liability coverage. The product was made available to Wells Fargo customers through self-service kiosks in Wells Fargo bank branches, its website, or by calling the carrier.
Wells Fargo eliminated product sales goals for retail bankers effective October 1 following settlements announced September 8 related to improper sales practices. There are now no incentives for direct or referred product sales for retail bankers, including insurance products.
Additionally, the company is going beyond the requirements of consent orders issued as part of the sales practices settlements and hiring a third-party consultant to review sales practices across the entire company, including those business lines touching insurance products.
“We eliminated product sales goals because we want to ensure nothing gets in the way of focusing on the best interests of our customers,” said Shrewsberry. “We’re working hard to make things right with our customers and build a better Wells Fargo.”