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.
