Leading insurer QBE has rejected allegations that it is undercutting rates to gain market share.

Australia Pacific Asia Central Europe CEO Vince McLenaghan says the undercutting rumours published in the Australian Financial Review are unfounded and untrue.

He told Sunrise Exchange News rates have been softening across the entire industry. QBE examined all its rates for the June renewals period to ensure technical pricing was met.

Mr McLenaghan says QBE’s rate softening is justified, but other insurers have been engaging in fierce competition that isn’t entirely rational.

“This is a concern, especially in terms of policyholder protection, given that some of these players are unrated by agencies such as Standard & Poor’s,” he said.

“I would say some competitors are spreading these rumours to deflect some of the unwanted attention away from themselves.”

Mr McLenaghan says QBE has lost business in some classes rather than reducing rates to keep up with market trends.