ASIC alleges QBE misled 500,000 customers

ASIC alleges QBE misled 500,000 customers | Insurance Business Australia

Insurance News

ASIC alleges QBE misled 500,000 customers

QBE “apologises for the inconsistencies”

Insurance News

By
Daniel Wood

The Australian Securities and Investments Commission (ASIC) has started federal court proceedings against QBE Insurance. In a media release this morning the regulator has alleged the giant insurer “misled customers about the value of discounts offered on certain general insurance products.”

In an ASX market release, QBE has said it “apologises for the inconsistencies” and has taken steps to address the issues.

ASIC alleges that QBE made statements and sent renewal notices promising discounts on premiums for general insurance products, including home, contents and car coverages.

According to the regulator’s release, the discounts were offered through more than 500,000 renewal notices to policy holders including to retirees, loyalty customers and QBE shareholders.

QBE reported the issues

QBE’s release said the firm reported the issues to ASIC and co-operated with the investigation. The insurer has also undertaken a remediation program for impacted customers.

Today’s announcement follows similar ASIC actions against IAG-subsidiaries, Insurance Australia Limited (IAL) and Insurance Manufacturers of Australia (IMA) in August 2023.

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