Allianz statement on motor add-on insurance refunds

17 January 2018

Allianz Australia (Allianz) will undertake a refund program as part of a package of initiatives implemented to address ASIC’s concerns about the sale of motor vehicle add-on insurance products.

Allianz is committed to providing options for insurance cover that are accessible and transparent, and which provide value for customers.

As part of an analysis of our motor vehicle add-on insurance products, we have identified some policyholders that purchased cover which may not have been suited to their circumstances and others that did not notify us to cancel their cover. Based on these assessments, we expect to refund approximately $45.6 million.

The refund program is part of a package of initiatives that Allianz implemented over the course of 2017 including:

  • improvements to the guidance given to car dealers
  • significant reductions in premiums to the benefit of customers and, consequently, commissions paid to car dealers for certain products
  • changes to the products offered
  • offering a wider choice of payment methods

Allianz also recently established a new Customer Advocacy function, responsible for placing a customer focus on improving the value, coverage and suitability of its motor add-on products.

Allianz continues to work with ASIC and other insurers through the Insurance Council of Australia on further industry-wide reform, in particular, a deferred sales model, or a gap between the offer and purchase of motor add-on products, so that consumers have more time to better assess their insurance needs.

Customers identified for a refund will be contacted in the coming weeks.

Customers can contact our dedicated support team on 1300 548 165 or email if they require any additional information in relation to the refund program.

For any media enquiries, journalists can contact our Media team.
Allianz Australia has been securing the future of our customers in Australia since 1914. We deliver a wide range of personal and commercial insurance products and services to more than 3 million policyholders. We also provide support for workers' compensation insurance to around 25% of the top 200 ASX companies, making us one of the leading workers' compensation insurers in Australia.

Allianz Australia Limited is a wholly owned subsidiary of the worldwide Allianz Group. The Allianz Group is one of the world's leading insurers and asset managers with corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life, and health insurance to assistance services, credit insurance and global business insurance. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index.
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
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