IAG

Background

The FMA filed a civil proceeding against insurer IAG New Zealand Limited (IAG) for fair dealing breaches in relation to its insurance products. The proceeding has eight causes of action relating to 11 alleged breaches of section 22, under Part 2 of the Financial Markets Conduct Act (FMCA) - false or misleading representations.

The breaches arise from IAG’s failures to correctly price the premiums charged to customers, and its failures to correctly advertise and apply important discounts to its insurance products sold via its business divisions and distribution partners.

IAG self-reported the issues following the FMA’s Conduct and Culture reviews of banks, life insurers, and fire and general insurers.

Media release: FMA files civil proceedings against IAG for fair dealing breaches