Overview
- ASIC has filed Federal Court proceedings seeking civil penalties, declarations and publicity orders against RACQ Insurance.
- The case alleges 573,407 renewal notices from September 2019 to December 2024 used a higher “last period premium” across home, contents, car, caravan, boat and pet policies.
- One ASIC example shows a renewal portrayed as a 1.5% rise when the true increase was about 39.9% because the prior year’s discounted price was not reflected.
- Court filings say customers complained within two days of the change in 2019, staff were aware early, and the issue was not escalated internally until late 2024, with complaints also reaching AFCA.
- RACQ says it self-reported in late 2024, has apologised, updated renewal communications and is cooperating, as IAG recently completed a 90% acquisition of the insurer.