Allianz suing Revolut after alleged contract breach

Allianz is suing neobank Revolut for £10.4m (US$13.1m) after the latter allegedly breached its contract with the leading insurer

Leading insurer Allianz is suing Revolut for £10.4m (US$13.1m), claiming the neobank was in breach of contract after it moved its customers away from Allianz to a different insurance provider.

The agreement between the pair, signed in April 2022, meant Allianz became Revolut’s travel insurance provider in 31 markets. 

Now, Allianz claims Revolut is in breach of this contract by moving its customers to a new insurance provider and terminating the agreement.

At present, the Revolut website states that Chubb European Group is its travel insurance provider, taking over from Cover Genius on November 13, 2023. 

Cover Genius had taken over travel insurance for Revolut from Allianz on May 16, 2023, when it provided cover from Cowen Insurance to Revolut customers. 

Now replaced by Chubb, Cover Genius’/Cowen Insurance’s partnership tenure lasted just six months. 

Whether Cover Genius will take similar action to Allianz remains unknown – this would depend on the nature of its contract with Revolut. 

The contract dispute

The breach of contract alleged by Allianz claims that Revolut failed to compile a daily report of eligible account holders for collective policy release benefits – data that enabled Allianz to calculate the monthly premium installments payable by Revolut to the insurer.

Even after Revolut terminated its contract with Allianz, the neobank – according to the insurer – was still required to continue supplying a daily report to Allianz, which it did not. 

What’s more, Allianz claims that these reports provided to it from June 2023 onwards did not accurately reflect the number of eligible accounts for collective policy release benefits. 

Adding further fuel to its claim against Revolut, Allianz also alleges the neobank breached deal terms by modifying the travel insurance product and its conditions for beneficiaries without written approval from Allianz. 

As an open case, the outcome remains undetermined – as does the potential reputational damage to Revolut. 

******

For more insights from FinTech Magazine, you can see our latest edition of FinTech Magazine here, or you can follow us on LinkedIn and Twitter.

You may also be interested in our sister site, InsurTech Digital, which you can also follow on LinkedIn and Twitter.

Please also take a look at the playlist for our latest hybrid event, FinTech LIVE London, to learn all about the latest trends in fintech. 

******

BizClik is a global provider of B2B digital media platforms that provides executive communities for CEOs, CFOs, CMOs, Sustainability Leaders, Procurement & Supply Chain Leaders, Technology & AI Leaders, Cyber Leaders, FinTech & InsurTech Leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare, and Food & Drink.

BizClik – based in London, Dubai, and New York – offers services such as Content Creation, Advertising & Sponsorship Solutions, Webinars & Events.

Share

Featured Articles

Moody’s: Financial Crime at Shell Companies – The Key Signs

In this deep dive, Moody’s Analytics' Senior Director Ted Datta details how to tell if a shell company is being used for financial crime…

EU Council Adopts Instant Payments Regulation

The Council of the European Union has adopted new regulation that will make instant payments in the euro currency available to all EU and EEA members

Ericsson and HPE Partner to Launch Fintech Cloud Services

Announced at MWC 2024, Ericsson is collaborating with Hewlett-Packard Enterprise (HPE) to deploy fintech cloud services on HPE GreenLake

Capital One's Takeover of Discover: All you Need to Know

Financial Services (FinServ)

Sustainability LIVE Net Zero: Sustainable Finance Insights

Sustainability

EPAM: 96% of Consumers Happy With AI in Banking

Banking