IAG NZ Fined for Insurance Fair Dealing Breaches

IAG New Zealand has been penalized for breaches of the country’s fair dealing provisions, impacting customers who were unable to access the policy benefits they were entitled to.

The insurer self-reported the breaches to the Financial Markets Authority (FMA), acknowledging that it had failed to provide customers with the correct information regarding their entitlements under their insurance policies. This failure meant that some customers were not receiving the full benefits they had paid for.

The FMA stated that IAG New Zealand’s actions constituted a breach of the Insurance (Prudential Supervision) Act 2010, specifically the duty to treat customers fairly. The penalty was applied because the breaches were systemic and impacted a significant number of customers over an extended period.

IAG New Zealand has been working to remediate affected customers, which includes contacting them and providing them with the benefits they were previously denied. The company has also implemented changes to its processes and systems to prevent similar breaches from occurring in the future.

The FMA has indicated that it will continue to monitor IAG New Zealand’s progress in rectifying the situation and ensuring fair treatment of its customers.

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