Ace Breaking News – Allianz Australia Insurance and AWP Australia have been fined $13.5 million and $3.3 million, respectively, for having misrepresented travel insurance coverage available to their customers.

Between 2016 and 2018, the companies were found to have advertised the maximum payable benefits on their parent company’s site, but sometimes failed to state customers would not always be eligible for those benefits.

ASIC says more information for consumers on choosing travel insurance is available on its website.

Allianz Australia Insurance and AWP Australia have been fined $13.5 million and $3.3 million, respectively, for making false or misleading statements on travel insurance to consumers, the Supreme Court of New South Wales has ruled today. 

The court found that between 2016 and 2018, the two firms, both of which are owned by Allianz SE, “misrepresented characteristics or level of coverage of its travel insurance available to consumers” on Allianz SE’s online platforms.

The Allianz website advertised the maximum travel insurance benefits payable to consumers but sometimes failed to state that sub-limits, terms, conditions or exclusions would limit those benefits, according to the Australian Securities and Investments Commission (ASIC).

ASIC deputy chair Sarah Court said Friday’s ruling highlighted the critical need for the insurance industry to be transparent and accurate when selling and promoting their products.

“We pursued this case as part of ASIC’s consumer protection focus on misleading statements in the sale of insurance products,” Ms Court said. 

“ASIC was concerned that thousands of customers were exposed to the risk that they might obtain insurance that they believed offered far more cover … than it did.”

AWP marketed, sold, and managed various travel insurance products on behalf of Allianz.

The two firms distributed travel insurance through partners, including airlines, financial institutions, credit card issuers, and travel agencies.

ASIC said more information for consumers on choosing travel insurance is available on its website. 

On the same day, Allianz recorded a 16 per cent rise for its net profit to 45.9 billion euros ($A76.83 billion) in the fourth quarter of 2024.

At Sterling Publishing & Media Service Agency, we prioritise transparency and accountability in all our operations. We wish to clarify that we are not responsible for any external content, hyperlinks, or costs associated with our services. Nevertheless, we remain committed to delivering outstanding services and greatly value your continued support. Thank you for your trust in us.