Australia takes insurer QBE to court over pricing discounts

(Reuters) -Australia’s corporate regulator said on Wednesday it is taking insurance firm QBE to court, alleging that the company misled customers around the value of discounts offered on certain general insurance products.

The Australian Securities and Investments Commission is alleging that QBE Insurance (Australia), a member of the ASX-listed QBE Group, made statements and sent renewal notices promising discounts on a raft of general insurance products between July, 2017, and September, 2022.

“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 ASIC deputy chair Sarah Court.

ASIC is seeking civil penalties, declarations and adverse publicity orders under the court proceedings.

QBE Insurance acknowledged the proceedings, stating that, following an external review of its pricing practices in 2022, it has “taken steps to address the inconsistencies, reported the issues to ASIC and has co-operated with ASIC’s investigation.”

The insurer said it will review the pleadings and will continue to work with ASIC on these matters.

The move by ASIC comes after the watchdog issued a letter in March to the country’s general insurance firms asking for improvement in claim-handling practices, especially in response to severe weather events.

In August 2023, ASIC filed a lawsuit against a couple of units of Insurance Australia Group, alleging they misled customers about loyalty discounts available for certain types of home insurance policies.