A class action has been launched against IAG and its subsidiary Swann Insurance, alleging “misleading and deceptive conduct” in relation to add-on insurance.
The litigation is conducted by Johnson Winter & Slattery in cooperation with Bannister Law, and IAG today issued a statement to the Australian Securities Exchange confirming that it is “aware of a representative proceeding”.
“The claim, seeking compensation, relates to misleading and deceptive conduct in relation to the way the insurance products were presented and sold in car dealerships to purchasers of motor vehicles and motor cycles between 1 January 2008 to 1 August 2017,” Principal at Banniste...
Insurers and the Insurance Council have come out strongly in defence of their performance after a report showed a 32% rise in breaches of their voluntary code of practice last financial year.
There has been a “very marked increase” in the number of self-reported significant breaches since last July, according to General Insurance Code of Practice Governance Committee Chairman Lynelle Briggs, who questioned the industry’s commitment to the code.
But insurers disagree with her assessment. IAG, Suncorp and the Insurance Council of Australia (ICA) say the jump in the number of reported breaches reflects insurers’ efforts to improve their compliance framework...
The Insurance Council of Australia (ICA) says serious concerns it raised about the product design and distribution reforms that passed Parliament this week were not addressed, and could lead to higher costs being passed on to customers.
“It remains unclear how design and distribution obligations will apply to financial products that are mass-marketed, such as home and contents insurance and motor vehicle insurance,” spokesman Campbell Fuller told insuranceNEWS.com.au today.
“This causes a number of problems, but ICA is particularly concerned about the impact on the renewal process. If insurers are obliged to ask again for customer information obtained th...
Product design and distribution laws that aim to boost consumer protections have passed Parliament in the final sitting days before the expected federal election.
“These reforms mean consumers will be better protected from being sold financial and credit products that are not suitable for their circumstances,” Treasurer Josh Frydenberg and Assistant Treasurer Stuart Robert said today.
The laws, flagged before the Hayne royal commission started and since amended to cover a wider range of products, require issuers including insurers to specify appropriate target markets, while distributers must take steps to ensure they are sold accordingly.
Hollard Commercial Insurance (HCi) has launched a year-long campaign to support insurance brokers and “promote the good work they do”.
While Vero’s annual SME Index released today shows brokers are under pressure from technological advancements and increasing mistrust of the wider financial services industry, Hollard says intermediaries are more important than ever.
“In recent times there has been a lot of talk about how technological advancements in the industry mean that consumers have a far wider choice and more information at their fingertips than they have ever had,” HCi CEO Richard Heilig told insuranceNEWS.com.au today.
Marsh & McLennan’s $US5.6 billion ($7.8 billion) acquisition of rival global broker JLT has taken effect after a final court order, with Australia a key market for the combined business.
The expanded group spans more than 130 countries and provides advice and solutions for more than $US100 billion ($139 billion) of annual property/casualty insurance and reinsurance premiums placed globally.
“Today marks the beginning of a new era with Marsh & McLennan and JLT coming together,” President and CEO Dan Glaser said last night.
“This is a combination of strength and strength, and the primary focus is growth – in talent capabilities, revenue and earnings.”
New Zealand-based insurer CBL Corporation has yet to pay any of its creditors who are owed at least $NZ173 million ($165 million), the voluntary administrators say in a new report.
The disposal of some offshore assets – including Sydney-based Assetinsure – in the past year has netted about $NZ207,000 ($198,295), with the bulk of the sale proceeds expected to come through at a later stage.
About $NZ1.93 million ($1.84 million) in fees has been paid to KordaMentha, who were appointed administrators in February last year, joint administrator Neale Jackson says in the report.
Legal costs have run up to $NZ2.1 million ($2 million) in the year since the company...