QBE has apologised again for failing to deliver on price promises made to customers between 2017 and 2022 after being taken to court by the securities regulator.
The Australian Securities and Investments Commission launched civil proceedings in Federal Court against the insurance company on Wednesday.
ASIC alleges that in statements on the insurer's website and in renewal messages sent to customers between July 2017 and September 2022, QBE promised discounts on premiums for a range of general insurance products, including home, contents and car insurance.
But the regulator said QBE's pricing model eroded the discounts received by more than half a million customers, in some cases to nil.
"Some customers were promised discounts for their loyalty when renewing their policies, which they didn't receive," ASIC deputy chair Sarah Court said.
"The failure by insurers to deliver on pricing promises is a key priority for ASIC and we will continue to take action to hold insurers to account.
"Where insurers make discount promises to renewing customers, they need to have robust systems and controls in place to make sure their customers receive the discounts they were promised."
QBE self-reported the issue to ASIC in mid-2022 and also disclosed the matter to the ASX in a July 19, 2022 announcement, saying it was sorry and was setting aside $US75 million for customer remediation.
The insurance giant reiterated its apology on Wednesday and said it understood the importance of meeting its promises to customers.
QBE plans to review the pleadings and work with ASIC on the matter.
