New Zealand’s Financial Markets Authority announced that, following an investigation, Southern Cross Benefits Limited (trading as Southern Cross Travel Insurance) admitted liability for breaches of fair dealing laws and paid NZD 1,105,000 to the Crown under an enforceable undertaking. The payment was made in lieu of a pecuniary penalty for contraventions of sections 21 and 22(d), (f) and (h) of the Financial Markets Conduct Act 2013, relating to misleading representations about discounts offered to prospective customers. Website and email statements represented that discounts for Southern Cross Medical Care Society members, online purchases and certain promotion codes would apply to customers’ entire premiums, but the discounts were only applied to base premiums; the difference between what customers received and what they would have received if the discounts had applied to the entire premium totalled NZD 3,501,221. The insurer cooperated with the investigation and fully remediated affected customers.
New Zealand Financial Markets Authority 2025-07-31
New Zealand Financial Markets Authority secures NZD 1.105 million payment under enforceable undertaking over misleading travel insurance discount claims
New Zealand's Financial Markets Authority announced that Southern Cross Benefits Limited admitted liability for breaches of fair dealing laws and paid NZD 1,105,000 under an enforceable undertaking. The insurer misrepresented discounts on premiums, affecting NZD 3,501,221, but cooperated with the investigation and fully remediated affected customers.