The Financial Markets Authority (FMA) has filed proceedings against AA Insurance in relation to historical issues concerning its Multi Policy Discount, AA Membership discount and No Claims Bonus Benefit.
AA Insurance identified the issues as part of its regular and ongoing internal reviews and self-reported them to the FMA.
AA Insurance has since corrected the issues and completed comprehensive remediation programmes involving refunds to customers, plus interest.
AA Insurance CEO Michelle James said, “We reiterate the apology we have made to all those affected by these historical issues.
“We accept there were aspects of our processes which weren’t perfect, and we’ve put our customers at the heart of our response to these issues. Late last year, we completed the comprehensive remediation programmes to put things right for our customers.
“When the issues were first identified, we took great care to identify the cause and the number of customers impacted. We proactively self-reported to the FMA, we fixed the issues, and made every effort to contact affected customers to apologise and provide refunds. We have worked closely with the FMA throughout the remediation process, providing them with regular updates.
“We want to reassure all our customers that we have further strengthened the way we monitor our systems and processes and we are investing in our operational and customer-facing systems to improve the experiences our customers have with us.
“We take our relationship with customers very seriously – it’s something that is consistently demonstrated in the mix of independent awards and accolades we receive and was evident in our decision to issue $19.5 million in rebates to customers in August 2020 due to the reduced likelihood of motor insurance claims during the COVID-19 lockdown period.
“AA Insurance remains committed to being open, honest, and transparent with our customers and living up to our reputation as one of New Zealand’s most trusted companies,” James said.
About AA Insurance
AA Insurance is an independently operated, New Zealand-based joint venture between the New Zealand Automobile Association (NZAA) and Vero Insurance New Zealand Limited (VINZL). Since 1994 we have demonstrated trusted expertise in home, contents and car insurance in New Zealand, and in 2018 introduced commercial small business insurance. We underwrite our own policies and sell direct to New Zealanders. Our 930+ staff look after over 480,000 customers with 970,000 policies.
We proudly partner with Variety NZ and Eden Park and have been consistently recognised by: Reader’s Digest Most Trusted Brands (since 2011) and Quality Service Awards for Car, and Home and Contents Insurance (since 2015), Kantar Customer Leadership Index (since 2019), Canstar Blue Most Satisfied Customers (2011-2018), and the Colmar Brunton Corporate Reputation Index (since 2015) that recognises New Zealand’s most successful companies. AA Insurance was also named Consumer NZ People’s Choice award winner for car, home and contents (2019 and 2020).
AA Insurance has an AA- (Very Strong) Insurer Financial Strength Rating given by Standard and Poor’s (Australia) Pty Ltd. For further information visit aainsurance.co.nz.
For more information please contact:
Media Team, AA Insurance, 027 406 1787, mediacontact@aainsurance.co.nz