Insurer QBE accused of misleading customers on price discounts

The insurance major is accused of misleading customers on discounts for products including home, contents and car protection.

QBE CEO Andrew Horton (right) and chairman Michael Wilkins in Sydney. Picture: John Feder/The Australian

The financial regulator has launched a lawsuit against insurance major QBE Insurance Group, alleging it misled hundreds of thousands of customers about pricing discounts.

The Australian Securities & Investments Commission alleges in court papers filed on Wednesday that QBE made false statements to 500,000 customers between July 2017 and September 2022.

The statements covered a range of general insurance products, including home, contents and car insurance.

ASIC deputy chair Sarah Court claims QBE’s pricing model “potentially eroded the discounts received by over half a million customers, in some cases to nil”.

‘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,” she said.

“Where insurers make discount promises to renewing customers, they need to have robust systems and controls in place to make sure their customers receive the discounts they were promised.”

ASIC is seeking civil penalties against QBE in the federal court.

The action comes after earlier court action against rival insurers IAG and IMA.

It coincides with a separate, high-profile pricing case against supermarket majors Coles and Woolworths, brought by the competition regulator.

QBE on Wednesday acknowledged the proceedings and said it had reported pricing inconsistencies to ASIC, co-operated with the regulator’s investigation and commenced a customer remediation program in July 2022.

“QBE apologises for the inconsistencies. QBE understands the importance of meeting its promises to its customers,” the insurer’s statement said.

More to come 

Originally published as Insurer QBE accused of misleading customers on price discounts