Insurance giant QBE taken to court by ASIC over allegedly misleading customers with false discounts
Insurance giant QBE has been sued by the corporate regulator over claims it misled customers about discounts.
ASIC will take the insurer to court and accuse it of promising discounts for home, contents and car insurance which weren't delivered
The discounts were offered to customers for their loyalty over a five-year period between July 2017 and September 2022, according to ASIC.
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QBE self-reported the issue to ASIC in 2022.
ASIC said QBE advertised the prices via 500,000 renewal notices to customers including retirees and QBE shareholders.
"ASIC alleges QBE's pricing model potentially eroded the discounts received by over half a million customers, in some cases to nil," Sarah Court, ASIC deputy chair, said in a statement.
"Some customers were promised discounts for their loyalty when renewing their policies, which they didn't receive."
It's alleged QBE had a pricing mechanism that limited the discounts given to customers.
Some were offered a smaller discount while others received none at all.
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ASIC will seek penalties as part of the court action against the insurer. Jim Rice
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Court said QBE's "failure to deliver" on these promised prices will be probed by ASIC in court.
ASIC will be seeking penalties as part of the court action.
QBE apologised over the "inconsistencies" in a statement to the Australian Securities Exchange and said it self-reported the issue in 2022.
"QBE apologises for the inconsistencies. QBE understands the importance of meeting its promises to its customers," the insurer said.
"QBE will review the pleadings and continue to work with ASIC on these matters."
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