Recent ASIC Convictions for making false or misleading statements

The Court found that between 2016 and 2018, Allianz and AWP published information online, including on Allianz’s domestic and international travel insurance web pages, that misrepresented the characteristics or level of coverage of its travel insurance available to consumers. The Allianz website advertised the maximum travel insurance benefits payable to consumers but sometimes failed to state that sub-limits, terms, conditions or exclusions would limit those benefits.

ASIC was concerned that thousands of customers were exposed to the risk that they might obtain insurance that they believed offered far more cover than they believed it did. In handing down his decision, Justice Rothman said: '… it is important that corporations take the steps at the highest level to ensure that proper processes are in place which prevent breaches of this kind… these breaches were essentially caused by a desire not to expend the necessary monies to ensure proper oversight of that which is published by the company'.

AB recommends that Businesses have a process in place for reviewing marketing/promotional material, and to periodically review this to ensure that this process is working effectively.