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 Limited (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 1000+ employees look after 500,000+ customers with more than 1,000,000 policies.
We proudly partner with Variety New Zealand – the Children’s Charity (as the lead partner of its Beds for Kids programme), Student Volunteer Army and support grassroot school sports via our Big Little Sponsorship sports grant in partnership with Eden Park. We are consistently recognised in industry awards and honours, including being voted the Reader’s Digest Most Trusted General Insurer for 13 years running, named Canstar’s 2023 Home and Contents Insurer of the Year and Outstanding Value Award winner, and currently ranked 7th amongst 100 of New Zealand’s most successful companies in the Kantar Corporate Reputation Index (since 2015).
Find out more at www.aainsurance.co.nz
For more information please contact:
AA Insurance Media Team
mediacontact@aainsurance.co.nz