Allianz to refund AUD8 mn for mis-selling

The Australian unit of Allianz SE will refund more than AUD8 million (USD5.40 million) to customers who were mis-sold consumer credit insurance (CCI) premiums, the Australian Securities and Investments Commission (ASIC) stated recently. 

The investment regulator said Allianz Australia Insurance Ltd will refund more than 15,000 consumers for a variety of products, including mortgage and loan protection policies. 

“Disappointingly, our work on the sale of CCI has highlighted widespread mis-selling and poor product design,” ASIC commissioner Sean Hughes said in a statement. 

Representatives of Allianz did not immediately respond to a request for comment.

ASIC said Allianz incorrectly sold insurance cover to people ineligible to claim for unemployment or disability, and death cover to customers under 21 years of age who were unlikely to need it. 

The refund also covers the charging of fees to customers who paid premiums by the month without adequate disclosure.