The Financial Markets Authority (FMA) has filed a civil proceeding against IAG New Zealand (IAG) alleging “extensive” fair dealing breaches. The FMA’s media release said about 269,000 customers were affected, resulting in overcharges of approximately NZ$35 million.
The release said IAG self-reported the issues following an FMA review.
“The scale of IAG’s fair dealing breaches is extensive, impacting its core business,” said Margot Gatland (main picture), the FMA’s head of enforcement.
The New Zealand regulator said the proceeding has eight causes of action relating to 11 alleged breaches concerning false or misleading representations in insurance products.
Gatland said IAG is New Zealand’s largest general insurer, “which reinforces the importance of the reliability of its systems.”
In a media statement sent to Insurance Business, IAG NZ recognised that “historically it made mistakes.”
“Since identifying these issues, our focus has been on putting this right for our customers who were impacted, providing them with their refund and apologising for our mistakes,” said CEO Amanda Whiting. “We are doing everything to prevent these issues happening again.”
IAG’s proactive response was acknowledged by the FMA.
“IAG’s exemplary conduct in response to the FMA’s investigation must also be acknowledged,” said Gatland. “IAG’s self-reporting was followed by its very early admission of liability, and its full cooperation including its commitment to an undefended proceeding.”
The action was filed in the High Court in Auckland.
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