ASIC Takes QBE Insurance to Court

(Reuters) – Australia's corporate regulator announced on Wednesday that it is suing insurance firm QBE, alleging that the company misled customers regarding discounts on certain general insurance products.

The Australian Securities and Investments Commission (ASIC) alleges that QBE Insurance (Australia), part of the ASX-listed QBE Group, made misleading statements and sent renewal notices promising discounts on a range 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," stated ASIC Deputy Chair Sarah Court.

ASIC is pursuing civil penalties, declarations, and adverse publicity orders through the court proceedings.

QBE Insurance acknowledged the lawsuit, noting that after an external review of its pricing practices in 2022, it has "taken steps to address the inconsistencies, reported the issues to ASIC, and has cooperated with ASIC's investigation."

The insurer indicated it will review the pleadings and continue collaborating with ASIC on these issues.

This action by ASIC follows a letter sent in March to the country’s general insurance firms, urging enhancements in claim-handling practices, particularly regarding severe weather events.

In August 2023, ASIC also filed a lawsuit against several units of Insurance Australia Group, alleging they misled customers about loyalty discounts on specific home insurance policies.