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.