Troubled brand Combined Insurance to cease writing new business in NZ
Combined Insurance, a division of ACE Insurance in Australia, is to cease writing new business in both New Zealand and Australia in the coming months.
The New Zealand business will cease writing new business from 25 February 2016, whilst the Australian business will do the same from 22 April 2016.
The company made the announcement via two brief separate statements this week.
ACE said the move came after a ‘detailed review’ and would not affect current policyholders with Combined.
“This change will not impact existing policyholders, who will continue to receive customer service, including claims handling, policy change requests and renewals,” the statement said.
“The decision to cease new policy sales followed a detailed review of the company’s business operations and growth prospects.”
Combined Insurance made headlines last year with ACE reportedly flying in global president of Combined, Brad Bennett, from the US for high level talks following numerous allegations against the business.
These included issuing fictional policies using false client names and details.
An ASIC investigation resulted in the permanent banning last July of an authorised representative, Abhinav Gupta, who was found to have contravened financial services laws.
The move to cease writing new business in Australia and New Zealand comes as ACE and Chubb finalised their multi-billion dollar merger, which will see the company branded under the Chubb name, which is expected to be confirmed in April.