The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In a significant development, the Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against QBE Insurance Group.
The move comes over what ASIC describes as serious issues with pricing discounts offered by the insurer that may have impacted over half a million policyholders.
According to ASIC, certain pricing mechanisms implemented by QBE inadvertently nullified the promised discounts under specific conditions, potentially reducing them to non-existence.
As ASIC deputy chair Sarah Court emphatically stated that the failure by insurers to deliver on pricing promises is a key priority for ASIC and that they will continue to take action to hold insurers to account. She further emphasized the need for robust systems and controls to ensure customers receive their entitled discounts.
The contentious discounts were marketed primarily through renewal communications to various customer segments, including retirees, loyal clients, shareholders, policyholders with multiple QBE products, and those without claims. Furthermore, these discount offers were featured in QBE's product disclosure statements available online.
ASIC elaborates that the post-discount pricing system at QBE allowed mechanisms like a minimum premium system, alongside cupping and capping procedures, which could significantly alter the actual discount value available to customers.
In response, QBE acknowledged the legal process concerns its delivery of pricing promises on policies such as caravan, household, marine, and motor insurance. These issues, QBE points out, stem from practices between July 2017 and September 2022.
QBE has since undertaken measures to rectify past inconsistencies, submitting a report to ASIC and emphasizing its continued cooperation. They stated in a release, “QBE apologises for the inconsistencies. QBE understands the importance of meeting its promises to its customers. QBE will review the pleadings and continue to work with ASIC on these matters.”
For severity, QBE had reserved $US75 million ($112 million) in July 2022 as part of a remediation initiative aimed at addressing these issues.
The ongoing focus of ASIC on pricing discounts dates back to October 2021, when it instructed several insurers to scrutinize and rectify their discount practices. ASIC further requested 11 companies to “fix, repay and report” any issues associated with such discounts.
According to a regulator report released in June of the previous year, significant corrective measures had led general insurers to repay a cumulative $815 million to in excess of 5.6 million customers due to discrepancies in pricing observed since January 2018.
Such legal entanglements aren’t new for the industry. In recent history, IAG faced action resulting in a $40 million penalty for loyalty discounts related to home insurance under the NRMA brand.
The insurance news source Insurance News Magazine has covered similar outcomes, highlighting challenges faced by major insurers such as RACQ, which incurred a $10 million fine for similar allegations.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
A recent quad bike fatality case in New South Wales has put farm safety, workplace liability and risk management back under close attention. ABC Rural reported on 2 July 2026 that Wumbulgal Agriculture Pty Ltd was fined $555,000 after an 82-year-old worker died in a quad bike accident at Yenda in the Riverina in February 2023. The company was found to have breached work health and safety obligations. - read more
The Department of Veterans’ Affairs has confirmed a significant change to the way allied health care for eligible veterans will be funded from 1 July 2027. The reform combines higher provider fees with the removal of the current treatment cycle and the introduction of a $5,000 annual allied health expenditure threshold for review of clinical effectiveness. - read more
The Insurance Council of Australia has opened public consultation on a redrafted General Insurance Code of Practice, with feedback invited from 24 June 2026 until 21 July 2026. For fitness professionals, this is more than an insurance-sector process. It is a timely reminder that the value of a policy is tested not only by the premium, but by what happens when a claim, complaint or vulnerable customer situation arises. - read more
APRA’s latest move on insurance data may sound technical, but it has practical implications for Australian consultants reviewing their risk programmes. The regulator has confirmed it will separately publish cyber insurance and management liability data within the National Claims and Policies Database, rather than leaving those lines blended into broader liability categories. - read more
A new crane and rigging insurance facility in Australia has put a spotlight on a practical problem that many high-risk contractors already understand: when one job is insured across several policies, a loss can become a dispute about which insurer should respond. - read more
New South Wales insurance customers are again at the centre of a cost-of-cover debate, after the latest state budget papers showed insurance-related taxes and levies are expected to raise more than $3 billion a year across the forward estimates. - read more
Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Insurance Claim: Notification to an insurance company requesting payment of an amount due under the terms of the policy.
No comments yet. Be the first to share your thoughts.