According to ASIC, RACQ Insurance included inflated 'last period premium' figures in their renewal notices, leading customers to believe that their premiums had increased less than they actually had. This practice potentially resulted in customers overpaying for their insurance policies. The misleading information affected various types of insurance, including home, car, caravan, boat, and pet insurance.
Despite receiving customer complaints shortly after implementing this practice, RACQ Insurance allegedly continued the misleading pricing for several years. ASIC is seeking civil penalties, declarations, and public orders to address these alleged breaches.
RACQ Insurance has acknowledged the proceedings and stated that it is cooperating with ASIC while conducting its own internal review. The company self-reported the issue in 2024 following media inquiries.
This case underscores the importance of transparency and accuracy in insurance communications. Policyholders are advised to carefully review renewal notices and seek clarification on any discrepancies to ensure they are not overpaying for coverage.
