The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In a significant development, the Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against QBE Insurance Group.
The move comes over what ASIC describes as serious issues with pricing discounts offered by the insurer that may have impacted over half a million policyholders.
According to ASIC, certain pricing mechanisms implemented by QBE inadvertently nullified the promised discounts under specific conditions, potentially reducing them to non-existence.
As ASIC deputy chair Sarah Court emphatically stated that the failure by insurers to deliver on pricing promises is a key priority for ASIC and that they will continue to take action to hold insurers to account. She further emphasized the need for robust systems and controls to ensure customers receive their entitled discounts.
The contentious discounts were marketed primarily through renewal communications to various customer segments, including retirees, loyal clients, shareholders, policyholders with multiple QBE products, and those without claims. Furthermore, these discount offers were featured in QBE's product disclosure statements available online.
ASIC elaborates that the post-discount pricing system at QBE allowed mechanisms like a minimum premium system, alongside cupping and capping procedures, which could significantly alter the actual discount value available to customers.
In response, QBE acknowledged the legal process concerns its delivery of pricing promises on policies such as caravan, household, marine, and motor insurance. These issues, QBE points out, stem from practices between July 2017 and September 2022.
QBE has since undertaken measures to rectify past inconsistencies, submitting a report to ASIC and emphasizing its continued cooperation. They stated in a release, “QBE apologises for the inconsistencies. QBE understands the importance of meeting its promises to its customers. QBE will review the pleadings and continue to work with ASIC on these matters.â€
For severity, QBE had reserved $US75 million ($112 million) in July 2022 as part of a remediation initiative aimed at addressing these issues.
The ongoing focus of ASIC on pricing discounts dates back to October 2021, when it instructed several insurers to scrutinize and rectify their discount practices. ASIC further requested 11 companies to “fix, repay and report†any issues associated with such discounts.
According to a regulator report released in June of the previous year, significant corrective measures had led general insurers to repay a cumulative $815 million to in excess of 5.6 million customers due to discrepancies in pricing observed since January 2018.
Such legal entanglements aren’t new for the industry. In recent history, IAG faced action resulting in a $40 million penalty for loyalty discounts related to home insurance under the NRMA brand.
The insurance news source Insurance News Magazine has covered similar outcomes, highlighting challenges faced by major insurers such as RACQ, which incurred a $10 million fine for similar allegations.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Renewed industry pressure to reduce insurance taxes has put affordability back in the spotlight for rural and regional Australia. The latest debate centres on the extra costs added to insurance through state-based duties, levies and other charges, which can make already expensive cover harder to maintain for households and businesses exposed to flood, bushfire, storm and cyclone risk. - read more
Recent complaints data from the Australian Financial Complaints Authority has again highlighted a pressure point that matters to rural Australia: insurance claims can become difficult when expectations, policy wording and evidence do not line up. While the figures cover the wider insurance market rather than farms alone, the themes are highly relevant for agricultural businesses dealing with storm damage, fire losses, machinery failures, fencing repairs or interrupted operations. - read more
Australia's latest seasonal weather signals have again pushed rainfall risk into the foreground for rural and regional businesses. While conditions vary sharply between districts, a wetter outlook for parts of the country is a useful reminder that risk planning should not wait until paddocks are already saturated, creek crossings are cut or machinery is bogged at harvest. - read more
Fresh insurance industry concern about underinsurance is especially relevant for Australian farmers as rebuilding and replacement costs remain stubbornly high. While the issue is often discussed in relation to houses, the same pressure applies across rural assets: sheds, fencing, pumps, tanks, grain storage, livestock yards, irrigation equipment and machinery can all cost significantly more to replace than they did when a policy was first arranged. - read more
Australia's general insurance sector has again put natural hazard resilience at the centre of the affordability debate, with fresh industry commentary warning that floods, bushfires, storms and cyclones are continuing to reshape how risk is priced. For farmers, this is not an abstract policy discussion. It goes directly to the cost and availability of farm insurance, particularly for properties with older buildings, exposed machinery, flood-prone access roads, boundary fencing, stored fodder or high-value livestock. - read more
Allianz Australia has refreshed its farm pack insurance, with the updated product announced on 20 July 2026. For farmers and rural property owners, the significance is less about one insurer changing a product and more about what it signals across the broader farm insurance market: insurers are trying to make cover easier to understand while adjusting policy features to better match modern farming operations. - read more
Insurance is a vital part of safeguarding any farming operation. As a farmer, protecting your property, equipment, and livelihood from unexpected events like natural disasters, theft, or accidents is crucial. Adequate insurance coverage ensures that you can recover quickly from setbacks without enduring overwhelming financial strain. - read more
The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more
Australian farming businesses face liability risks that go well beyond crop production and livestock management. From visitor injuries and unsafe produce to chemical use, worker safety, machinery incidents and emerging technology risks, understanding where liability can arise is an important part of protecting a farm's long-term resilience. - read more
Welcome to 'The Ultimate Guide to Affordable Farm Insurance for Australian Farmers.' As stewards of the vast Australian countryside, farmers face an array of unique challenges and risks. Every day, they grapple with the forces of nature, the volatility of the markets, and the complexities of modern agricultural operations. - read more
Farm property insurance can help protect the fixed assets on rural land, including farm buildings, sheds, fencing, tanks, yards and other infrastructure. This guide explains what may be covered, how values are usually reviewed and what details to check before comparing policy options. - read more
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Public Liability Insurance: Insurance which provides protection against liability to third parties.
No comments yet. Be the first to share your thoughts.