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Highlights:
- After executing an initial review on its pricing promise, QBE discovered several cases where the company failed to deliver policy pricing promises fully.
- Therefore, the company has kept US$75 million aside for compensating those customers.
- QBE is carrying out the review process with assistance from ASIC.
Renowned Australian Insurance provider QBE Insurance Group Limited (ASX:QBE) shared an update concerning the impacts of its Australian pricing promise review on the ASX today. Followed by the update, QBE shares opened trading marginally lower on the ASX today.
The shares of QBE Insurance Group opened trading 0.298% lower, at AU$11.685 per share at 10:50 AM AEST on the ASX today (19 July).
Details of QBE’s pricing promise review:
The board of QBE has already been carrying out pricing practice reviews for several years now and is also keeping up with the broader ASIC industry review. The review includes several products and insurance administration systems of QBE.
After following a thorough review process, the company has pointed out several cases where it has failed to deliver the policy pricing promises. Although the company is yet to complete its review process, it has already sent its initial review findings to ASIC.
QBE is currently focusing on completing its review process with ASIC to make sure that its affected customers are remediated as soon as possible.
CEO of QBE Group, Andrew Horton, said that he is disappointed with the findings of the review. He also apologised to the customers who had been affected. He affirms that QBE is trying to complete its review process as soon as possible so that it can remediate the affected customers.
Furthermore, the insurance giant is likely to record a provision in its H1 FY22 results to account for expected customer remediation. The company sets aside US$75 million before tax for the same.
QBE is expected to share more details on its pricing promise through its H1 FY22 results announcement on 11 August 2022.
About QBE Insurance Group:
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Summary of QBE’s share price performance on the ASX:
The ASX-listed insurance company is seen performing significantly well on the ASX in the time frame of the last 12 months. QBE’s share price is seen to have gone up over 10% over the previous one year. However, on a YTD basis, QBE’s share price has dropped slightly around 2% (as of 10:36 AM AEST on the ASX today, 19 July).
