Allianz misleads two million customers
Allianz’s Australian division has admitted that it mis-sold travel insurance to around two million customers, promising unlimited emergency cover to policyholders when, in fact, there were limits on both cost and location, Australia’s Royal Commission heard on 17 September.
Allianz Australia’s General Manager of Retail Distribution Michael Winter revealed to the misconduct commission that it had misled clients who purchased travel insurance products through its website. The policies had been available to consumers on its website from December 2015, claiming to give the customer unlimited cover. However, the cover had a AUS$1,000 limit, and cover to some countries was excluded.
The firm’s solicitors raised concerns about the advertisement of the products, even suggesting spending AUS$30,000 to conduct a thorough review of the website, but Allianz declined the suggestion and continued to sell the product. The product was taken down in June 2018.
“This is demonstrative, I want to put to you, of Allianz not prioritising compliance, and compliance with the law,” said Rowena Orr, a lawyer assisting the inquiry. “At Allianz, it's more important to protect the bottom line than to stop misleading your customers.”
Allianz has said that it has not yet contacted the customers affected by the policy. The inquiry will review the Australian insurance industry’s current practice of self-regulation later this week.