The Australian Securities and Investments Commission (ASIC) has filed court proceedings against QBE Insurance (Australia) for allegedly misleading customers regarding promised discounts on general insurance products.
Between July 2017 and September 2022, QBE is accused of sending approximately 500,000 renewal notices to retirees, loyal customers, shareholders, and policyholders with multiple accounts. Additionally, the company advertised discounts in various product disclosure statements available on its website.
These communications purportedly assured discounts on a range of general insurance products, including home, contents, and car insurance. However, many customers reportedly did not receive the promised discounts when renewing their policies, according to ASIC Deputy Chair Sarah Court.
“ASIC alleges that QBE’s pricing model significantly diminished the discounts for over half a million customers, in some instances eliminating them entirely,” Court stated in a press release.
The case has been filed in the Federal Court, where ASIC is seeking civil penalties, declarations, and adverse publicity orders against QBE Insurance.
Related topics:
