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.
“The failure by insurers to deliver on pricing promises is a key priority for ASIC and we will continue to take action to hold insurers to account,” said Sarah Court (pictured above), the regulator’s deputy chair. “Where insurers make discount promises to renewing customers, they need to have robust systems and controls in place to make sure their customers receive the discounts they were promised.”
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.
