The Australian Securities & Investments Commission (ASIC) has commenced Federal Court proceedings against RACQ Insurance Limited alleging it issued misleading insurance renewal documents by overstating customers’ prior-period premiums, distorting the size of renewal price increases. ASIC alleges that between September 2019 and December 2024 RACQ sent more than 570,000 renewal documents containing a ‘last period premium’ figure that was false or misleading because it was higher than what customers had actually paid (or were paying) after negotiated discounts or policy changes. The alleged conduct affected multiple product lines including home and contents, car, caravan, boat and pet insurance, and ASIC claims RACQ was on notice early through customer complaints but continued the practice for more than five years. ASIC will seek declarations, civil penalties and publicity orders, alleging a contravention of section 12DB of the ASIC Act.
Australian Securities & Investments Commission 2025-09-23
Australian Securities & Investments Commission takes Federal Court action alleging RACQ misled customers with premium comparisons in 570,000 insurance renewals
The Australian Securities & Investments Commission (ASIC) has initiated Federal Court proceedings against RACQ Insurance Limited for allegedly issuing misleading insurance renewal documents by overstating prior-period premiums, affecting over 570,000 documents. ASIC claims the misleading figures distorted renewal price increases and that RACQ continued the practice despite customer complaints. ASIC seeks declarations, civil penalties, and publicity orders for contravening section 12DB of the ASIC Act.