ASIC pursues court action against Allianz and AWP

ASIC pursues court action against Allianz and AWP | Insurance Business

ASIC pursues court action against Allianz and AWP

Allianz Australia Insurance Ltd and AWP Australia Pty Ltd are facing action as the Australian Securities and Investments Commission (ASIC) launches civil penalty proceedings in the Federal Court against both companies for the alleged misleading sale of travel insurance on Expedia websites.

ASIC said both companies allegedly breached the Corporations Act and the ASIC Act relating to misleading and deceptive conduct and general license obligations.

In respect of certain travel insurance products sold through Expedia websites between February 2015 and September 2018, the regulator claims that:

  • Allianz failed to correctly disclose the basis upon which premiums were calculated in the product disclosure statements.
  • Allianz and/or AWP sold insurance to customers who were ineligible to make claims under the policies.
  • Allianz and/or AWP allowed Expedia websites to misuse a quote from the Department of Foreign Affairs and Trade about the significance of purchasing travel insurance.

ASIC is seeking declarations and pecuniary penalties against both companies. However, the first case management hearing is not yet listed by the court.