As part of its 2025 enforcement priorities, the Australian Securities and Investments Commission (ASIC) has been taking on insurers it says haven’t treated customers fairly or in good faith. In its latest move, announced on 23 September 2025, the regulator initiated proceedings in the Federal Court against RACQ Insurance Limited (RACQ) for allegedly breaching section 12DB of the Australian Securities and Investments Commission Act 2001.
In these proceedings ASIC alleges that between September 2019 and December 2024, RACQ sent more than 570,000 renewal documents to customers containing representations about a ‘last period premium’ which were false or misleading. In many cases, the ‘last period premium’ amount was higher than what customers had paid (or were paying) after negotiating discounts or making a change to their policy that affected the premium, leading to a distorted view of how much their premium was actually increasing.
ASIC has published a Concise Statement and Originating Process which sets out further details regarding its allegations against RACQ. ASIC is seeking declarations, civil penalties and publicity orders from the Federal Court.
Corporate Plan
ASIC Deputy Chair Sarah Court said failures by insurers to deal fairly and in good faith with customers was an enforcement priority for ASIC. In its 2025-2026 Corporate Plan, ASIC revealed that it will examine the accuracy and transparency of general insurers’ disclosures about premiums and work to better understand consumer experiences. ASIC urges insurers to audit and strengthen their disclosure and customer feedback practices.