Insurance Australia Group Ltd. unit Swann Insurance (Aust) Pty Ltd. will offer to refund customers A$39 million after the Australian Securities and Investments Commission found the insurer sold add-on insurance products with little or no value to them.
The regulator said it identified concerns with Swann Insurance's products as part of its ongoing review of such projects sold through car and motorbike dealerships. The insurer stopped offering such products through car dealers on Aug. 6, 2016, and through motorbike dealers on Oct. 13, 2017.
The refund program applies to six add-on insurance products sold by the insurer that made payments toward the customer's loan or made payments if the consumer's car was damaged.
Swann Insurance will write to all affected customers about the refund program until Sept. 30, 2018. The company will then make a community benefit payment after that date, based on the refunds that have not been claimed, the regulator noted.