Federal Court hearings have concluded in the Australian Securities and Investments Commission case against IAG over home insurance loyalty discounts.

Summing up was completed in Melbourne on Friday and Justice Stewart Anderson reserved judgment.

ASIC has alleged Insurance Australia Ltd and the Insurance Manufacturers of Australia joint venture misled customers about discounts they would receive, because of the way pricing algorithms were used. IAG is contesting the allegations.

The action relates to the SGIO, SGIC and RACV brands.