Allianz has found itself refunding $8 million in consumer credit insurance premiums to more than 15,000 customers.
“Disappointingly, our work on the sale of CCI has highlighted widespread mis-selling and poor product design. This remediation outcome is only one of many examples where CCI has failed consumers. We expect insurers to cease to sell insurance products that provide little or no value,” ASIC Commissioner Sean Hughes said, in an official statement earlier this week.
According to the Australian Securities and Investment Commission (ASIC), Allianz sold ‘dud’ products to consumers who were actually ineligible to receive them, including the sale of death cover to those under the age of 21. Products were also sold with poorly-disclosed fee structures, and many consumers were paying for premiums they did not need.
The regulator indicated that in 2018, Allianz refunded $45.6 million to 68,000 consumers for add-on insurance through car dealerships.
Last month, the regulator released its report, Consumer Credit Insurance: poor value products and harmful sales practice. ASIC is looking to ban the sale of CCI and direct life insurance through unsolicited phone calls.