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 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 14 years running, named Canstar’s 2023 Home and Contents Insurer of the Year, 2023-2024 Canstar Outstanding Value for Home and Contents, 2024 Outstanding Value Car Insurance and their inaugural most Satisfied Customers Car Insurance Claims award. We are currently ranked 6th amongst 100 of New Zealand’s most successful companies in the Kantar Corporate Reputation Index (since 2015) and placed fourth in the 2024 Kantar Customer Leadership Index.
Find out more at www.aainsurance.co.nz
For more information please contact:
AA Insurance Media Team
mediacontact@aainsurance.co.nz