Insurer refunds $1.4 million

Allianz has refunded approximately $1.4 million to more than 20,000 customers, after identifying that it had overcharged some consumer credit insurance policies.

ASIC praised Allianz for its proactive approach to the matter, after the insurer advised ASIC of two breaches in 2013, and began remedial action.

The first breach related to a failure to refund stamp duty owed to customers with consumer credit insurance policies, which affected policies issued since 2003.

Allianz also overcharged 2591 customers under monthly-instalment premium payments.

ASIC Deputy Chairman Peter Kell says Allianz has taken its breach reporting obligations seriously.

“Breach reporting is an important part of the regulatory framework, as it helps ASIC identify compliance problems and ensure consumer redress where necessary,” he says.

Allianz has implemented a process for refunding its policyholders that includes an interest payment in the refund amounts.