Australia regulator sues IAG unit for failing to honour discount promises By Reuters
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(Reuters) – Australia’s company regulator commenced civil proceedings in opposition to a unit of Insurance coverage Australia Group on Friday, for failing to cross on reductions value A$60 million ($44.51 million) to almost 600,000 prospects.
The Australian Securities and Investments Fee (ASIC) alleged that Insurance coverage Australia Restricted (IAL) – the house, motor and landlord insurance coverage arm of IAG (LON:) – had failed to use reductions promised to some prospects on the renewal of their dwelling and motor insurance coverage insurance policies.
That impacted insurance coverage renewals between March 2014 and November 2019 pertaining to 705,000 separate insurance policies, the ASIC stated.
Shares of the IAG fell almost 4% following the information.
The authorized proceedings come on the again of industry-wide failures which have led to insurers repaying greater than A$400 million to over 2 million prospects since 2018, the regulator added.
“ASIC is looking on normal insurers, together with IAL, to make sure prospects get the complete reductions they’re promised,” ASIC Deputy Chair Sarah Court docket stated.
IAG, one of many nation’s prime insurers, in a separate assertion acknowledged the proceedings by the ASIC and stated the corporate had self-reported the difficulty to the regulator throughout a 2019 evaluation.
The final insurer additionally stated greater than 80% of the affected prospects had been compensated and that it was nonetheless working with the ASIC via the remediation program.
($1 = 1.3481 Australian {dollars})
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