News: IAG UPDATE 1-Australian general insurers to repay $550 mln over pricing misconduct - regulator

(Adds details from ASIC report in paragraphs 2 and 3, background on previous actions taken in paragraphs 4, and quote from ASIC deputy chair in paragraph 5)

June 23 (Reuters) - Australian general insurers will repay A$815 million ($550.29 million) to more than 5.6 million consumers due to their systemic failures in delivering on pricing promises, the country's corporate regulator said on Friday.

A report published by the Australian Securities and Investments Commission's (ASIC) found insurers did not always have adequate oversight and controls over the pricing promises made or delivered by the distributors of their products.

Acting upon pricing failures reported since Jan. 1, 2018, ASIC's Deputy Chair Karen Chester said systemic pricing failures were a result of "unnecessary complexity in pricing promises and pricing practices — accounting for the lion's share (at least A$379 million) of the remediation".

Back in October 2021, the regulator had directed 11 general insurers, including Insurance Australia Group (IAG) , QBE Insurance (Australia) Limited and the local subsidiary of Allianz ALVG.DE to complete comprehensive reviews to find, fix, report and repay customers for pricing failures.

"It's now up to the boards of general insurers to ensure the prompt and full repayment of the A$815 million owed to their 5.6 million customers, implement the fixes needed and rebuild consumer trust," added Chester. ($1 = 1.4810 Australian dollars)