Insurance Inquiry Update Report
1st September 2019
The Australian Competition and Consumer Commission (ACCC) has released its Northern Australia Insurance Inquiry Second Update Report.
The report finalises the 13 draft recommendations made in the First Interim Report and provides updates on the five Focus Areas for the inquiry in 2019.
The ACCC’s First Interim Report, with 15 recommendations to governments and industry, was provided to the Treasurer on 30 November 2018, and the Australian Government is still considering its response.
FMA’s submission on the First Report supported the view that public and private mitigation measures should result in reduced insurance premiums. The Second Report contains recommendations that premium discounts for mitigation measures should be clearly stated, and insurers should provide information on mitigation works which could reduce premiums.
The Report also recommends that states and territories implement measures to prompt customers to investigate insurance costs when they are considering purchasing real estate. The Inquiry previously found that “residents purchasing property are often unaware that a property is in a high risk area, and do not consider the cost of insurance”.
The Inquiry is now working on five Focus Areas which require further attention. As part of Focus Area 1: Measures to further improve insurance affordability and availability, the ACCC is reviewing a range of options, and whether these could be applied in northern Australia. Issues include how insurers respond to private and public mitigation measures.
The ACCC has requested stakeholder views on Focus Area 1 by 6 September 2019.