Legal expense insurance specialist Arag has withdrawn from the Australian market after failing to meet targets since opening a Sydney office in 2019.

Renko Dirksen, the CEO of German parent Arag SE, says it is “time for us to leave. The market has not shown the response we expected. Unfortunately, business expectations in Australia have not materialised.

“We extend our sincere thanks to our Australian colleagues for their efforts, and to our distribution partners, brokers and legal networks for their ongoing support.”

Arag Australia’s products were underwritten by HDI. Existing policies will continue to be serviced, and customers supported in their claims.

“It is with genuine regret, Arag ... will withdraw from the Australian market after almost six years,” its website says.

In a letter to local brokers seen by insuranceNEWS.com.au, Arag Australia director Antoinette von Wendt says the team “will continue to manage our obligations, especially claims. We are committed to service and manage all existing policies. However, Arag Australia will not offer renewal terms, nor take on any new business.”

Ms von Wendt, who was CEO until Natasha Gale took over four years ago, says quoting and binding on the broker web portal has been disabled. To bind an existing quote or cancel a policy, instructions should be sent to underwriting@arag.com.au.

“We want to express our heartfelt thanks for your ongoing partnership, trust and collaboration,” Ms von Wendt said. “Your efforts in bringing Arag’s offering to market – often in pioneering ways – have made a lasting impact.

“We are proud of what we’ve achieved together and hopeful that legal expense insurance will remain a valuable part of the Australian insurance landscape in future.”

Claim notifications and lodgements should be sent to claims@arag.com.au, and policyholders can still access Arag’s document library online. A helpline (+61 2 8066 0162) is also available.

More information will be provided to brokers in coming weeks.

Arag says it is the leading legal insurer worldwide, active in 19 countries.