ASIC investigates RACQ over home insurance renewal pricing complaints

The Australian Securities and Investments Commission (ASIC) is investigating RACQ over complaints regarding misleading home insurance renewal notices. Customers have reported discrepancies between the premiums listed and the actual amounts paid, leading to confusion about price increases. RACQ's renewal notices compared new premiums to a "last period premium," which did not always reflect discounts or adjustments made during the previous policy term. This has resulted in significant differences in reported price changes, with some customers experiencing much higher increases than indicated. In response to the complaints, RACQ plans to clarify its messaging about insurance pricing. The insurer has also faced scrutiny for mishandling claims and has refunded over $160 million in discounts that were not properly communicated to customers.