Suncorp has paid $23 million in refunds after failing to deliver promoted discounts and policy upgrades.

Almost 850,000 customers were affected by the breaches, which date from June 2010.

Suncorp identified the problem and reported it to the Australian Securities and Investments Commission (ASIC), which ordered an independent review.

In response to the findings, the company will enhance its compliance system across the life and general insurance businesses, and will report to the regulator until the changes are complete.

ASIC Deputy Chairman Peter Kell says Suncorp “acted appropriately” in reporting the breaches and refunding customers.

The regulator is “pleased Suncorp is improving its compliance systems in a way the review suggested”.

Suncorp says compliance issues “have either been rectified or are in the process of being rectified”, and most affected customers have been contacted.

Suncorp Group entities affected by the breaches are Suncorp Metway Insurance, AAMI, GIO General, AAI, Suncorp Life & Superannuation, Suncorp Financial Services, Standard Pacific Consulting and Guardian Advice.