ASIC secures $ 10 million in bonuses for Allianz travel insurance customers

ASIC secures $ 10 million in bonuses for Allianz travel insurance customers

The Australian Corporate Supervisory Authority secured $ 10 million in repair payments to Allianz Insurance clients who allegedly misled websites including Expedia.

The Australian Securities and Investments Commission (ASIC) has taken action against Allianz Insurance and Allianz Global Assistance (known as AWP).

The reform payments come after ASIC announced it had begun a lawsuit against Allianz and AWP for allegedly misleading consumers on Expedia travel sites in September.

The insurance was sold to 31,500 consumers through the Allianz website and distribution partners, including Expedia.

Allianz sold travel insurance through a number of channels, including its website, AWP website, airlines, financial institutions, and travel agencies.

The $ 10 million refunds are for several forms of misconduct that Allianz and AWP accept including:

  • Sell ​​policies to consumers ineligible to file a claim
  • Partially paid travel insurance claims
  • Selling policies on Expedia sites for insurance premiums that were higher than those sold on a standalone basis

Acting Chair of ASIC, Karen Chester, said the company’s oversight board “has taken steps to ensure clients are fully processed”.

“Insurance companies need to be careful to ensure that they do not mislead consumers into believing they have insurance cover for something when they do not,” Chester said.

“ASIC has not only initiated civil actions related to one aspect of the behavior, but has ensured that over 31,000 consumers are fully processed.”

In response to the measures, Allianz and AWP removed potentially misleading or deceptive data from their websites and those of their partners, processed travel insurance customers whose claims had been partially paid, and recovered their insurance premiums, with interest, for customers who purchased travel insurance from Allianz’s private website or Partner sites.

Consumers who have concerns about their travel insurance purchased from Allianz or its partners between June 2012 and November 2018 can visit the Allianz Travel Insurance review website for more information about the repair program.

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