The New Zealand Financial Markets Authority (FMA) has issued a public warning to Aioi Nissay Dowa Insurance (AIOI) after it failed to apply advertised multi-vehicle and multi-policy discounts to motor vehicle insurance customers, resulting in overcharging and a breach of the fair dealing provisions in Part 2 of the Financial Markets Conduct Act. The issue was notified to the FMA in March 2024 by Aioi Nissay Dowa Management New Zealand Limited, with manual processes for identifying customers with more than one policy failing to pick up discount eligibility. Policies sold through vehicle dealerships and online were affected, with 5,055 customers overcharged almost $700,000 over nine years. AIOI self-reported three days after becoming aware, identified and notified affected policyholders, made remediation payments, and took steps to prevent recurrence; the FMA found no evidence of deliberate misconduct and attributed the root cause to poor controls or ineffective systems.
New Zealand Financial Markets Authority 2026-01-30
New Zealand Financial Markets Authority issues public warning to Aioi Nissay Dowa Insurance for failing to apply advertised discounts
The New Zealand Financial Markets Authority warned Aioi Nissay Dowa Insurance for failing to apply advertised discounts, overcharging 5,055 motor vehicle insurance customers nearly 700,000 NZD over nine years, breaching fair dealing provisions. AIOI self-reported, notified affected policyholders, made remediation payments, and implemented measures to prevent recurrence, with the FMA attributing the issue to poor controls or ineffective systems rather than deliberate misconduct.