According to ASIC, RACQ Insurance provided inflated 'last period premium' figures 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. Despite receiving customer complaints shortly after implementing this practice, RACQ allegedly continued it for several years.
The misleading information affected various types of insurance, including home, car, caravan, boat, and pet insurance. ASIC is seeking civil penalties, declarations, and public orders against RACQ Insurance. The company has acknowledged the proceedings, stating that it self-reported the issue in 2024 following media inquiries and is cooperating with ASIC while conducting its own internal review.
For Australian consumers, this case underscores the importance of carefully reviewing insurance renewal notices and being vigilant about any discrepancies in premium information. It also highlights the need for transparency and accuracy in the insurance industry to maintain consumer trust.
