ASIC has taken legal action against RACQ Insurance, accusing it of misleading customers with false premium comparison pricing in renewal documents over five years, affecting over 570,000 notices. The regulator alleges RACQ’s practices distorted premium increases, hindering accurate premium comparisons and potentially costing customers more. ASIC seeks civil penalties, declarations, and publicity orders.

Insurance Australia Group, the largest general insurer in Australia, recently acquired a 90% stake in RACQ Insurance. ASIC claims RACQ was aware of the misleading nature of its renewal notices, receiving complaints but failing to take corrective action for years. RACQ acknowledges the issue and is cooperating with ASIC to resolve the matter.

Read more at Yahoo Finance: Australia sues IAG’s unit for allegedly misleading thousands of customers