Check out my recent video presentation entitled "Cupping a Whupping - ASIC v Insurance Australia Limited [2023] FCA 724" in which I look at the Federal Court penalty decision of Abraham J which resulted in a total pecuniary penalty of $40 million for 1 million plus breaches of the ASIC Act. The case involved the use a Cupping Mechanism, or algorithm, which recalculated and increased the base premiums on 705,000 policies before Discounts were applied, so as to charge NRMA customers higher premiums on renewal. The maximum penalty which could have been imposed for the breaches was at least $1.976 trillion (ie $1.8 million x 1,098,000 breaches). Surprisingly, ASIC submitted and the Court found that IAL had "no intent to mislead" when implementing the Cupping Mechanism.
Run time 25 mins
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