Allianz Australia will regularly review its products and processes after agreeing to refund more than $8 million to purchasers of consumer credit insurance (CCI) products that offered little value.

The Australian Securities and Investments Commission (ASIC) said last week the refunds, including premiums, fees and interest, will be paid to more than 15,000 consumers and apply to active, cancelled or lapsed policies sold from 2011 to the end of last year.

Allianz had previously announced it would withdraw from sale CCI policies by the end of the month and says it is being pro-active across its product lines.

“We will continue to regularly review our product design, sales and claims processes to ensure they continue to meet our customer needs and expectations,” a spokeswoman told insuranceNEWS.com.au.

The CCI refunds relate to mortgage and loan protection policies sold through financial institutions. They cover the risk of being unable to meet payments because of death, injury, illness or involuntary unemployment.

ASIC says consumers ineligible to make a claim for unemployment or disability and people aged under 21 who were unlikely to need death cover had been sold policies. The refunds also cover fees charged without adequate disclosure to customers who paid monthly.

“This remediation outcome is only one of many examples where CCI has failed consumers. We expect insurers to cease to sell insurance products that provide little or no value,” Commissioner Sean Hughes said.

Allianz says last year it completed a review of CCI products sold through financial institutions and identified that a number of customers may not have been eligible to receive the full benefit of the purchased cover. The insurer said it notified ASIC of its concerns and agreed to remediation.

“We regret that in this instance some of our customers may have ended up with products that have not been entirely suitable, and we are committed to a customer-first approach and taking the necessary action to make this right,” the spokeswoman said.