Australian courtroom orders Allianz pay $1.1 mln penalty for journey insurance coverage gross sales

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Flags with the brand of Allianz SE, Europe’s largest insurer, are pictured earlier than the corporate’s annual shareholders’ assembly in Munich, Germany Might 3, 2017. REUTERS/Michaela Rehle

Sept 7 (Reuters) – An Australian courtroom fined native models of Allianz SE (ALVG.DE) for promoting journey insurance coverage to ineligible clients and never correctly disclosing the way it calculated premiums on Expedia (EXPE.O) web sites, the nation’s company watchdog stated.

Two models of German insurer Allianz have been on Monday fined a complete of A$1.5 million ($1.12 million) in a civil case introduced by the Australian Securities and Investments Fee (ASIC) in September final 12 months.

The models, Allianz Australia and AWP Australia, dedicated A$10 million in October final 12 months to compensate round 31,500 clients who have been bought probably incorrect journey insurance coverage by means of Allianz’s personal web site and Expedia, ASIC stated.

Allianz Australia issued the journey insurance coverage whereas AWP dealt with its sale.

“The insurance coverage business must be clear and correct when promoting and selling their merchandise,” ASIC Deputy Chair Sarah Courtroom stated in an announcement.

ASIC stated the courtroom took into consideration the early admission by the Allianz firms in deciding the penalty.

The German firm stated it self-reported the matter in 2018 and didn’t contest the penalty sought by the ASIC.

“Allianz and AWP welcome the finalisation of this matter,” Allianz stated in an emailed assertion.

The 2 models additionally face separate legal fees for allegedly making inaccurate statements between 2016 and 2018 when promoting each home and worldwide journey insurance coverage.

($1 = 1.3444 Australian {dollars})

Reporting by Nikhil Kurian Nainan in Bengaluru; Enhancing by Sandra Maler

Our Requirements: The Thomson Reuters Belief Rules.

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