A&G Insurance responds to ASIC allegations

On Tuesday, Australia’s financial services regulator launched a case suing an insurance firm for allegedly using an unfair insurance contract term. In a media release, ASIC (Australian Securities and Investments Commission) said this case against Auto & General Insurance Company (A&G) is the first time it has started proceedings of this kind.

According to A&G’s website, the firm insures millions of Australians. The firm’s offerings include car, home, contents, travel insurance and roadside assistance. The ASIC action only concerns a single term in their home and contents insurance contracts.

The case, now before the Federal Court, involves A&G’s standard form home and contents insurance contracts. These contracts are in products issued by companies including Budget Direct – a firm owned by A&G – and also ING Home & Contents, Virgin Insurance and Qantas Insurance.

In response to the Insurance Business coverage of the ASIC allegation, A&G’s communications services company, Cato & Clive reached out to IB. The company emailed a statement from an A&G spokesperson.

Five customers refused claims based on ‘unfair’ term

“A&G has not been refusing or reducing claims brought by customers, or cancelling their policies, in reliance on the term, that is the subject of the proceedings, since September 15, 2022,” said the spokesperson. “A&G believes that only five customers had claims refused or reduced in relation to the term before that date.”