The Suncorp Group is facing a potential class action lawsuit led by law firm Slater and Gordon. The legal action stems from allegations that the company charged loyal customers inflated insurance premiums due to their long-term commitment to brands like AAMI, GIO, and Apia.
The term “loyalty tax” has been used to describe the practice, which Slater and Gordon claims was embedded in policies without customers’ awareness. The firm is investigating whether the pricing practices of Queensland’s largest insurance provider constitute misleading conduct under Australian consumer law.
According to Slater and Gordon, the investigation focuses on the potential repercussions for up to 10 million insurance policies, suggesting that more than a million customers may have been impacted by these alleged practices. The law firm stated, “The increased charges were included in premiums without proper disclosure, effectively punishing loyalty to these brands.”
In response, a spokesperson for Suncorp expressed surprise at the investigation, stating the company would “strenuously defend any future legal proceedings.” They emphasized that Suncorp has invested significantly in its pricing and underwriting technology, data models, and team expertise to ensure fair treatment of customers.
“We take into account a comprehensive range of data sources, which are frequently updated and reviewed,” the spokesperson added. This statement follows the company’s recent financial success, reporting a profit of $1.8 billion for the 2024-2025 financial year.
The scrutiny surrounding Suncorp’s pricing strategy has intensified, raising concerns about the fairness of its premium structures. Affected customers holding car or home insurance policies with AAMI, GIO, Apia, or Suncorp are encouraged to register their interest with Slater and Gordon as the investigation unfolds.
The outcome of this class action could have significant implications for both the insurance industry and customers who have remained loyal to their providers. The allegations, if proven, could reshape how insurers approach loyalty and pricing strategies in the future.
