QBE Australia & New Zealand refund add-on insurance customers
QBE has been working to address concerns about the sale of add-on insurances in motor dealerships to ensure customers receive better service and value.
We take our responsibility to provide quality, value for money products seriously and we’re committed to doing the right thing by our customers and the broader community.
While we have a relatively small market-share of the add-on insurance market sold through motor dealers, we strongly support measures to improve the value, transparency and sales process of add-on insurance products.
When ASIC raised concerns about these products, we were at the forefront of industry reforms and proactively reduced our commissions because it’s the right thing to do.
ASIC has provided positive feedback on QBE’s willingness to cooperate and undertake remediation for add-on insurance.
QBE believes a consistent commission cap for all add-on insurance products sold through motor vehicle dealerships, when coupled with our review of products and sales processes, will deliver improved outcomes for customers.
We have identified customers we believe may not have received value when purchasing QBE add-on products through a motor dealer. We’ve started writing to those customers who have bought Guaranteed Asset Protection (GAP) insurance or Consumer Credit Insurance (CCI) in the past six years to offer them a refund.
Furthermore, we have updated the guidance given to those motor dealers who sell our products on the suitability of add-on insurances for customers and the principles to adhere to when selling our products, to ensure customers only purchase insurance that meet their needs.
We are currently reviewing our products and have established several working groups to find ways of improving them. At the same time, we’re exploring new product offerings that better suit the needs of motor vehicle buyers.
QBE will be contacting customers entitled to a refund progressively over the coming months.
QBE has established a support team to assist affected customers and answer any questions.