The New Zealand Financial Markets Authority announced that IAG New Zealand Limited has admitted fair dealing breaches under the Financial Markets Conduct Act and the Court has imposed a final pecuniary penalty of NZD 19,500,000 for false and or misleading representations relating to its insurance products. The admitted misconduct involved failures to correctly price premiums and to correctly apply important discounts across insurance products sold through IAG’s business divisions and distribution partners. The pleaded breaches affected about 269,000 customers and resulted in estimated overcharges of about NZD 35 million. Between September 2021 and December 2024, IAG self-reported 41 issues to the FMA, with ten of the most significant issues forming eight causes of action; the remaining 31 issues, involving an estimated total remediation of NZD 21 million, were not pleaded but were included in a schedule to provide context. The Court treated the nature and extent of the contraventions and delays in reporting as aggravating factors, while the penalty reflected discounts for self-reporting, early admissions, cooperation with the investigation, and customer remediation steps.
New Zealand Financial Markets Authority 2025-10-06
New Zealand Financial Markets Authority secures NZD 19.5 million pecuniary penalty against IAG for widespread fair dealing breaches
The New Zealand Financial Markets Authority imposed a NZD 19.5 million penalty on IAG New Zealand Limited for fair dealing breaches under the Financial Markets Conduct Act, involving false or misleading representations of insurance products affecting about 269,000 customers. The Court considered the extent of contraventions and reporting delays as aggravating factors, while the penalty was reduced for IAG's self-reporting, early admissions, cooperation, and remediation efforts.