The ICA has responded to an industry expert’s concerns that insurers are not being transparent with consumers over premium pricing, stating that the key points raised are the subject of a number of government reviews.
Professor Allan Fels, Victoria’s Fire Services Levy Monitor, said, in an authored report, that consumers taking out insurance are not provided with easily accessible information about what they are and are not covered for.
The report has found that insurers provide no information about whether consumers are assessed as low, medium, high, or very high risk for things such as flood, bushfire and burglary, or given the reasons for premium price rises.
A spokesman for the ICA said Fels’ concerns are being addressed by government review including the Financial Systems Inquiry, the Competition Review, the Productivity Commission’s review of Natural Disaster Funding Arrangements, Treasury’s examination of North Queensland insurance availability, and the Australian Government Actuary’s examination of home insurance pricing in North Queensland.
The spokesman explained that those Victorian property owners are benefiting from the abolition of the Fire Services Levy (FSL) on insurance products, which has ensured all Victorians who benefit from the fire services contribute to funding them, and reduces the disincentive for property owners to be underinsured or not insured.
They added that the ICA “notes the Victorian FSL Monitor’s paper and the contribution he has made to the broader debate on insurance disclosure and availability”.
