ASIC files case against QBE Insurance for alleged ‘misleading’ discounts

Loyal customers were promised discounts but reportedly did not receive them.

The Australian Securities and Investment Commission (ASIC) is commencing court proceedings against QBE Insurance (Australia), alleging that it misled customers on discounts offered to its general insurance products.

Between July 2017 and September 2022, QBE reportedly sent out 500,000 renewal notices to retirees, loyal customers, QBE shareholders, and QBE customers who held multiple policies. QBE also offered discounts in various product disclosure statements published on its website, ASIC said.

These notices and statements allegedly promised discounts for a range of general insurance products, including home, contents and car insurance.

QBE customers were also promised discounts for their loyalty when renewing their policies but did not receive them, said ASIC deputy chair Sarah Court in a statement posted on the ASIC website.

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

The court proceedings have been filed in the Federal Court.

ASIC said that it is seeking civil penalties, declarations and adverse publicity orders.