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QBE Insurance Faces Legal Action Over Alleged Misleading Discounts

Examining the Implications of ASIC's Lawsuit Against QBE

QBE Insurance Faces Legal Action Over Alleged Misleading Discounts?w=400
The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against QBE Insurance, alleging that the insurer misled over half a million customers about pricing discounts between July 2017 and September 2022.

According to ASIC, QBE's pricing model reduced the discounts that customers were entitled to, affecting retirees, loyal customers, shareholders, holders of multiple policies, and those with claims-free histories. This practice potentially led to customers overpaying for their insurance policies.

In response to the lawsuit, QBE's shares experienced a 1.1% decline, reflecting investor concern over the allegations. ASIC is seeking civil penalties and declarations, emphasizing the necessity for insurers to maintain robust and transparent discount systems.

For real estate professionals, this case highlights the critical importance of transparency and ethical practices within the insurance industry. It serves as a reminder to ensure that clients are fully informed about the terms and conditions of their insurance policies, including any discounts or benefits they may be entitled to.

Maintaining trust and integrity is paramount in the real estate sector. Professionals should advocate for clear communication between insurers and clients to prevent misunderstandings and ensure that clients receive the full benefits of their policies.

Published:Friday, 3rd Oct 2025
Source: Paige Estritori

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Knowledgebase
Incontestability Clause:
A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.