IAG defending potential US$690m class action suitSeptember 17 2019 by InsuranceAsia News Staff
A class action against Insurance Australia Group’s subsidiary’s Swann’s sales of “add-on” insurance could be worth up to A$1 billion (US$690 million).
Sydney-based federal court judge Jacqueline Gleeson detailed in a judgment published on September 13 that although the numbers are unknown it could be in the hundreds of thousands, according to the Sydney Morning Herald.
IAG is defending the class action from litigator Balcne REV in April this year after Swann faced scrutiny from the Hayne Commission enquiry into financial services.
The commission heard that over the last decade Swann sold 850,000 policies for over A$1 billion but fewer than 10% of customers ever made a claim.
IAG’s senior counsel Jeremy Kirk, told the court that the possible sums involved in the class action were in the order of A$600 million to A$1 billion.
Mediation is scheduled for November and the trial has been listed for hearing next July. Swann had already stopped selling the products before the Hayne Commission took place.
The Hayne Commission made a series of recommendations Australia’s banks, P&C insurers and notably life insurers.
- October 18
The State Council has scrapped foreign shareholding limits for banks and insurers, effective immediately.
- October 11
The OIC should be given more independence, says the IMF in its latest assessment.
- October 11
The country's regulatory body will delay by one year the adoption of the new global accounting standards.
- October 10
The Hong Kong insurer has teamed up with the founder of Hillhouse Capital.