According to ASIC, RACQ Insurance provided inflated 'last period premium' amounts in these notices, leading customers to believe that their premiums had increased less than they actually had. This practice potentially resulted in customers overpaying for their insurance policies. The affected policies encompass a range of insurance types, including home, car, caravan, boat, and pet insurance.
Despite receiving early complaints from customers regarding these discrepancies, RACQ Insurance allegedly continued the practice for several years. The insurer self-reported the issue in 2024 following media inquiries and has stated that it is cooperating with ASIC while conducting its own internal review.
ASIC Deputy Chair Sarah Court emphasized the gravity of the situation, stating, 'During a cost-of-living crisis, we believe RACQ misled thousands of customers by including false comparison pricing in their renewal documents.' She highlighted that such practices could lead customers to make uninformed decisions, potentially resulting in financial detriment.
In response to the allegations, RACQ Insurance acknowledged the proceedings and reiterated its commitment to transparency and customer trust. The company has initiated measures to rectify the issue and prevent future occurrences.
For boat owners and marine enthusiasts, this case underscores the importance of carefully reviewing insurance renewal notices and being vigilant about any discrepancies in premium comparisons. It also highlights the need for insurers to maintain transparency and accuracy in their communications to uphold consumer trust.
