AA Insurance has received a penalty for historical issues concerning its Multi Policy Discount, AA Membership discount and No Claims Bonus Benefit.
Michelle James, CEO AA Insurance:
The judgment issued by the High Court stems from previously reported system and process errors made when applying our Multi Policy Discount (MPD), AA Membership Discount and No Claims Bonus Benefit to some eligible customers’ policies.
When mistakes happen, our commitment is to make things right and put our customers at the heart of our response. We have apologised for the errors made and between 2020-2022, carried out comprehensive remediation programmes to fully refund more than $15.6 million to past and present customers, including with interest. We self-reported to the Financial Markets Authority (FMA) and have worked cooperatively with them throughout the process.
We are committed to being better and are confident that today we have stronger systems and processes in place, which we continue to build on. We are also investing heavily in the transformation of our core systems, which will help to further improve the experiences our customers have with us.
AA Insurance remains focused on being open and transparent with our customers and living up to our reputation as one of New Zealand’s most trusted companies.
About AA Insurance
AA Insurance is a New Zealand-based joint venture between Vero Insurance New Zealand Limited and the New Zealand Automobile Association Limited ('NZAA'). Vero is owned by Suncorp Group Limited, a listed Australian company. NZAA is an incorporated society that is governed by a National Council and Board. Since 1994 we have provided home, contents and car insurance in New Zealand and in 2018 we introduced small business insurance.
We underwrite our own policies and sell direct to New Zealanders. Our New Zealand-based teams looks after 560,000+ customers with more than 1,100,000 policies. Standard and Poor's (Australia) Pty Ltd has given us an Insurer Financial Strength Rating of AA- (Very Strong).
We are consistently recognised in industry awards and honours. This includes being voted the Reader's Digest Most Trusted General Insurer for 14 years running, named Canstar's 2023-2024 Outstanding Value Award winner for Home and Contents insurance and ranked 6th among 50 of New Zealand's top consumer-facing corporates in the Kantar Corporate Reputation Index in 2024.
Find out more at www.aainsurance.co.nz
For more information please contact:
AA Insurance Media Team
mediacontact@aainsurance.co.nz