Allianz files lawsuit against Revolut

Friday 24 November 2023 14:32 CET | News

Germany-based Allianz has filed a lawsuit against Revolut for GBP 10.4 million, alleging that the neobank broke its obligations over a travel insurance deal. 

The agreement between Revolut and the UK branch of Allianz Worldwide Partners allowed the neobank to include a collective insurance policy for its Premium and Metal account holders in the UK, Isle of Man, Jersey, and Guernsey. Moreover, the deal was set for four years after being implemented in April 2022. However, in May 2023, Revolut informed Allianz that its customers would receive travel insurance from a different provider as of June 2023, specifically from Cowen Insurance, with the cover being arranged by Cover Genius. The neobank mentioned that from June 2023 and for the foreseeable future no customers would be reported to Allianz, with all users being migrated to Cowen Insurance.

Germany-based Allianz has announced that it is suing Revolut for GBP 10.4 million, alleging that the neobank broke its obligations over a travel insurance deal.

Even if the agreement between the two organisations predetermined termination rights that provided both parties with the ability to dissolve it at any time, the terminating party was required to offer a six months written notice when employing this right. Allianz submitted the suit at the beginning of November 2023 and underlined that the termination would only take effect at specific stages during the agreement, either in March 2024 or March 2025. Allianz presented the GBP 10.4 million amount as its estimate for its losses taking into account projected customer numbers and claims figures.

Allianz’s claims regarding Revolut’s breached obligations

Allegedly, Revolut breached its obligation to compile a daily report of the number of accountholders eligible for the benefits of the collective policy release, with the court filing mentioning that these allowed Allianz to calculate the monthly premium instalments payable by Revolut to the insurer. After being informed of Revolut’s decision, Allianz stated that the neobank was required to continue offering a daily report notwithstanding the planned migration. The insurer also separated eligible customers and customers that were not yet migrated to the new provider. Allianz’s fillings also mention that even if Revolut made reports since June 2023, they did not accurately reflect the number of eligible accounts. Allianz stated in the court documents that Revolut initially compiled a daily report of 2,407 accounts, rather than the daily report of zero accounts, with the neobank confirming that it intended to cease to report any accounts.

Furthermore, Allianz declared that Revolut breached the terms of the deal by modifying the product and conditions for its beneficiaries without its written approval. According to Allianz’s statement, migrating customers from the Allianz product and not providing it to any customers altered the product and the basis on which it is offered. Revolut declined to comment on the matter. 

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Keywords: insurance, digital banking, neobanks, banking, online banking, mobile banking
Categories: Banking & Fintech
Companies: Allianz, Revolut
Countries: United Kingdom
This article is part of category

Banking & Fintech




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