The Insurance Monitor and its purpose
The NSW Government is to undertake a major reform to the way emergency services are funded in the State. In particular, it is moving to replace the levy now imposed on insurance policies with a levy imposed on properties to be paid alongside council rates.
The Emergency Services Levy Insurance Monitor is overseeing the abolition of the insurance-based Emergency Services Levy. The Monitor provides advice and guidance to consumers and the insurance industry to make certain that insurers genuinely phase out the insurance-based levy during to the transition to the property based levy.
Australia’s largest insurance companies will be compelled to provide evidence to a Public Inquiry into conduct in the insurance industry ahead of the abolition of the Emergency Services Levy (ESL) from property insurance policies after 1 July 2017.
The Insurance Monitor, Professor Allan Fels AO, has highlighted big differences in property insurance prices charged by major insurers in his latest quarterly report to the NSW Treasurer, the Honorable Dominic Perrottet MP.
Insurance companies are being put on notice that claims of profit margins being squeezed will be subject to rigorous scrutiny during the monitoring of the removal of the Emergency Services Levy from NSW insurance premiums on 1 July next year.
The Emergency Services Levy Insurance Monitor, Professor Allan Fels, has put insurance companies on notice that pricing errors in relation to removal of the Emergency Services Levy (ESL) from premiums would not be tolerated by his Office.