Intriguing Legal Battle: Australian Regulator Sues QBE Over Alleged Insurance Rebate Claims

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against QBE Insurance (Australia), a part of the ASX-listed QBE Group, over allegations of misleading customers regarding discount offers on general insurance products. The regulator claims that between July 2017 and September 2022, QBE made declarations promising discounts on various insurance products and distributed renewal notices, but these discounts may not have been applied.

ASIC Deputy Chair Sarah Court emphasized the importance of insurers delivering on pricing promises, stating: "Insurers failing to honor their pricing promises is a priority for ASIC, and we will continue to hold insurers accountable."

The legal action seeks civil penalties, declarations, and adverse publicity orders. QBE Insurance acknowledged the court proceedings, stating that following an external review of pricing practices in 2022, the company has taken measures to rectify inconsistencies. They reported these issues to ASIC and cooperated with the regulator's investigation.

This lawsuit follows ASIC's March communication urging general insurers in Australia to improve claims handling practices, especially in light of severe weather events. Additionally, in August 2023, ASIC initiated legal action against divisions of Insurance Australia Group, accusing them of misleading customers over loyalty discounts on certain home insurance policies.