Australia regulator sues IAG unit for failing to honour discount promises

Stock Markets27 minutes ago (Oct 14, 2021 09:26PM ET)

(C) Reuters.

(Reuters) – Australia’s corporate regulator commenced civil proceedings against a unit of Insurance Australia Group on Friday, for failing to pass on discounts worth A$60 million ($44.51 million) to nearly 600,000 customers.

The Australian Securities and Investments Commission (ASIC) alleged that Insurance Australia Limited (IAL) – the home, motor and landlord insurance arm of IAG (LON:ICAG) – had failed to apply discounts promised to some customers on the renewal of their home and motor insurance policies.

That impacted insurance renewals between March 2014 and November 2019 pertaining to 705,000 separate policies, the ASIC said.

Shares of the IAG fell nearly 4% following the news.

The legal proceedings come on the back of industry-wide failures that have led to insurers repaying more than A$400 million to over 2 million customers since 2018, the regulator added.

“ASIC is calling on general insurers, including IAL, to ensure customers get the full discounts they are promised,” ASIC Deputy Chair Sarah Court said.

IAG, one of the country’s top insurers, in a separate statement acknowledged the proceedings by the ASIC and said the company had self-reported the issue to the regulator during a 2019 review.

The general insurer also said more than 80% of the affected customers had been compensated and that it was still working with the ASIC through the remediation program.

($1 = 1.3481 Australian dollars)

Australia regulator sues IAG unit for failing to honour discount promises

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

BOJ to defy global rate hike trend, cut price outlook

Economy3 minutes ago (Oct 25, 2021 11:50PM ET) (C) Reuters. FILE PHOTO:...

Subscribe to our stories

Join the exclusive subscription today and get premium articles for free

Same Category

BOJ to defy global rate hike trend, cut price outlook

Economy3 minutes ago (Oct 25, 2021 11:50PM ET) (C) Reuters....

Gold Down as Dollar Inched Up, but Moves Small

Commodities25 minutes ago (Oct 25, 2021 11:28PM ET) (C) Reuters....

Seoul court fines Samsung leader Lee for unlawful sedative use – Yonhap

Stock Markets42 minutes ago (Oct 25, 2021 11:11PM ET) 3/3 (C)...