Loyalty tax

Through its price monitoring of ten major insurance companies, the Insurance Monitor has identified a difference in premium prices charged to new customers compared with customers who renew their combined home and contents insurance policies with their existing insurer.  The issue is of concern to the Monitor because ESL is charged as a rate on base premiums.  As such, the ESL rate translates into higher ESL dollars when base premiums are higher.  

In November 2018, the Monitor issued a Discussion paper titled: Pricing differences: New vs existing customers, to assist in promoting informed discussion around the topic.  Feedback was invited from interested parties, including the general public.

The consultation period has now closed. The Monitor wishes to thank all interested parties and the general public for the submissions and feedback provided.


Discussion Paper: Pricing differences: New vs existing customers


PDF size: 563KB


The Monitor has received a range of submissions, including from the Insurance Council of Australia (ICA), consumer groups and the general public. A copy of the submission from the ICA is attached.


The Monitor has provided a written response addressing a number of areas of the ICA's submission.


Also attached are submissions from:

  • the Financial Rights Legal Centre pdf%20icon.png
  • the Consumer Action Law Centrepdf%20icon.png
  • Finder                                           pdf%20icon.png


The remaining submissions from the public are being reviewed by the Monitor's office.