New Zealand’s largest insurer, IAG, has been fined $19.5 million by the High Court for overcharging nearly 250,000 customers tens of millions of dollars by failing to provide promised multi-policy discounts and benefits.
The Financial Markets Authority said the breaches, spanning more than 20 years across brands including AMI, NZI, and State, were the most extensive it had encountered, caused by outdated systems and slow reporting. IAG admitted the failings, repaid affected customers, and apologised, saying it had “since strengthened its processes”.
The case is part of a wider FMA crackdown that has seen major banks and insurers return more than $215 million to 1.5 million customers.
IAG should have bought Chloe Swarbrick, Rachel Brooking, and Scott Simpson business class tickets to the UK to make their fines disappear.