- ASIC has secured $10 million from Allianz and related partners for remediation of customers who were sold with misleading travel insurance policies.
- The regulator noted that potentially 31,500 customers bought deceptive travel insurance policies.
- ASIC has encouraged customers to visit the Allianz website for information about the remediation program.
Corporate regulator, the Australian Securities and Investments Commission (ASIC) has secured $10 million in remediation payments from Allianz Australia Insurance and AWP Australia aka Allianz Global Assistance.
ASIC noted that the insurer had potentially mis-sold insurance to around 31,500 customers through its website, distributors, and third-party websites. Allianz distributes travel insurance products through its websites, travel booking websites, financial institutions, travel agencies, and airlines.
A review undertaken by the insurer found that some of the benefits and benefit limits on websites did not provide a clear and transparent view of certain benefits. As a result, the customers might have purchased insurance products under a false impression.
Late in September, ASIC began court proceedings against Allianz and AWP for misleading customers on Expedia websites.
Although the civil penalty proceeding led by ASIC relates to misleading insurance policies sold via Expedia, the remediation program includes policies sold through all other channels, including Allianz’s own website, travel agencies, airlines and financial institutions.
Allianz and AWP have accepted the refunds on several misconducts, including the sale of policies to customers who were ineligible for claims, selling policies on Expedia with higher premiums compared to those policies sold on a standalone basis, and partially paid travel insurance claims.
Allianz and AWP have addressed the issues by:
- removing potentially misleading statements from their websites and partner websites,
- remediating travel insurance customers whose claims were partially paid,
- refunding premiums along with interest to customers who purchased policies through Allianz’s website and partner websites.
ASIC has encouraged customers, who purchased travel insurance from Allianz and its partners between June 2012 and November 2018, to visit the Allianz website for information about the remediation program.