Insurance giant IAG’s staff raised doubts internally about a discounting algorithm six years before the board heard of the problems that the business was having in pricing premiums, which have since cost it more than $500 million.
“This seems inconsistent with our customer-focused strategy,” one technology worker wrote in an email about IAG’s approach to reducing a customer’s “effective discount”.
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Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane. Email Liam at liam.walsh@afr.com.au