15 October 2021 - ASIC launches Federal Court action and calls on general insurers to review pricing practices

ASIC Deputy Chair, Sarah Court, called on all general insurers to review their pricing systems and controls to prevent consumer harm as a matter of priority. In particular, general insurers should:

• identify any differences between the prices (including discounts) they promised their customers (over at least the past five years) and what those customers were charged;
• comply with their breach reporting obligations;
• remediate any customers impacted, including refunding overpaid premiums; and
• fix the systems, processes, controls and governance practices that have led to promised discounts not being honoured.

Insurers who do not take these actions run the risk of further enforcement action.