RACQ Insurance Under Fire for Alleged Misleading Premium Practices

According to ASIC, RACQ Insurance inflated the 'last period premium' figures in these notices, leading customers to believe that their premiums had increased less than they actually had. This practice potentially resulted in customers overpaying for their insurance policies. Despite receiving customer complaints shortly after implementing this practice, RACQ allegedly continued the misleading pricing for several years.

The affected policies include home, car, caravan, boat, and pet insurance. ASIC is seeking civil penalties, declarations, and public orders against RACQ Insurance. The insurer has acknowledged the proceedings and stated that it is cooperating with ASIC while conducting its own internal review.

This case underscores the importance of transparency and accuracy in insurance communications. Customers are advised to carefully review renewal notices and compare them with previous premiums to ensure they are not being misled. Insurers, on the other hand, must ensure that their pricing practices are clear and honest to maintain trust and compliance with regulatory standards.