Allianz’s Australian unit misled clients with ‘unlimited’ insurance
SYDNEY: An Australian unit of German insurer Allianz SE sold travel insurance that misleadingly promised unlimited emergency medical cover wherever people were even though the policies had limits on both cost and location, a misconduct inquiry heard on Monday.
The Royal Commission, which can recommend criminal prosecutions and tougher regulations, is now investigating the insurance industry. It has already found widespread wrongdoing in the consumer credit, rural lending, small business banking and pension sectors.
The inquiry heard that Allianz’s website led people to believe the firm offered unlimited cover for emergency medical services overseas, when in fact the cover had a A$1,000 ($715) limit, and that cover applied wherever they travelled, when there were restrictions on locations covered.
Under questioning, Allianz’s general manager of retail distribution Michael Winter, said it had misled clients who purchased travel insurance products through its website.
The policies had been sold on Allianz’s website since December 2015 and, even though the firm’s solicitors raised concerns about the advertising claims at that time, were only removed earlier this year.
Documents submitted at the inquiry showed Allianz declined a suggestion by its solicitors to spend up to A$30,000 in a thorough review of the whole website.