Combined Insurance will cease writing new business in Australia and New Zealand, its parent company has announced.

Combined – a subsidiary of Ace, which merged with Chubb earlier this year – was the focus of an Australian Securities and Investments Commission (ASIC) probe following allegations of agents duping customers to maximise commissions.

According to whistleblowers, people were sold policies they did not need and information such as medical histories was deliberately omitted.

Agents allegedly engaged in “tombstoning”, where dead or imaginary clients were signed up and initial premiums paid by the agents because the commissions were worth more.

An ASIC spokesman told insuranceNEWS.com.au its investigations are ongoing.

Chubb has announced Combined will stop writing new business in New Zealand on February 25 and in Australia on April 22.

Current policyholders will not be affected and will continue to receive customer service including claims handling, policy change requests and renewals.

“The decision to cease new policy sales followed a detailed review of the company’s business operations and growth prospects,” Chubb said.