Illegal Algorithm Costs Insurance Australia $40 Million

Illegal Algorithm Costs Insurance Australia $40 Million
Statue of Lady Justice is seen on Central Local Court in Sydney, Australia, on July 5, 2017. AAP Image/Keri Megelus
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Australia’s largest insurance company has been hit with the largest-ever penalty imposed by the courts against an insurer for failing to give promised discounts to NRMA customers.

The Federal Court has ordered Insurance Australia Limited to pay $40 million (US$26.4 million) after finding the company, wholly owned by ASX-listed Insurance Australia Group, made false or misleading representations to more than 600,000 customers between March 2014 and September 2019.

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Australian Associated Press is an Australian news agency.
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