Suncorp and Allianz in multi-million dollar refunds
The Australian Securities and Investments Commission’s (ASIC) scrutiny of so-called add-on insurance has seen major insurers forced to make multi-million refunds to consumers with Suncorp and Allianz the latest to join the list.
ASIC on Wednesday announced that Allianz Australia Insurance Limited would refund $45.6 million to 68,000 customers for add-on insurance sold through car dealerships that were of little to no value.
The regulator’s announcement said that “ASIC had a number of concerns about the design and sale of a range of Allianz add-on insurance products sold through car dealerships across Australia between 1 December 2010 and 30 November 2017”.
In a separate announcement it said Suncorp would refund 41,428 add-on insurance customers $17.2 million for insurance bought through car dealerships that provided little or no value to consumers.
It said the insurance was provided by MTA Insurance, owned by Suncorp.
AUTHOR
Mike Taylor
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
