Insurance giant IAG faces class action for allegedly inflating premiums of loyal customers across Australia.
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00:00 And then $81.97.
00:04 In a cost of living crunch, every dollar counts.
00:07 We don't go anywhere.
00:08 I can't tell you the last time we went to a movie.
00:11 I think it was Titanic.
00:13 Nice.
00:14 Victorian pensioner Kerry Rees has been loyal to insurer RACV for decades.
00:20 We've always just thought they're a reputable company.
00:23 We can trust them.
00:25 We just felt secure.
00:26 A new lawsuit alleges insurance giant IAG deliberately targeted loyal home insurance
00:33 customers.
00:34 The class action will look at policies held between 2018 and 2024 for customers of RACV,
00:41 SGIO and SGIC.
00:44 These customers were duped.
00:45 They were getting their renewal notices each year and those notices were saying, "You're
00:51 a loyal customer.
00:52 I'm going to give you a reward for that."
00:55 The main allegation is that the insurer used an algorithm to identify customers unlikely
01:00 to switch insurers.
01:02 It then inflated their premiums before offering them a loyalty discount.
01:07 The insurance company was jacking up the base premium before the discount was applied with
01:14 the effect that the discount really had no value at all.
01:19 Slater and Gordon is also investigating one of IAG's biggest brands, NRMA, for another
01:25 possible class action.
01:27 In a statement, IAG said it will defend this class action and we maintain we have delivered
01:33 on loyalty promises.
01:35 Consumer law expert Jeanne Patterson says lawsuits like this one are hard fought and
01:40 proving the harm to individuals can be difficult.
01:44 Investors often feel a moral outrage that they've been misled or taken advantage of
01:50 and unfortunately that's not what the law compensates.
01:54 People eligible for the class action will be automatically notified.
01:57 [BLANK_AUDIO]