The Senate Economics References Committee has conducted an inquiry into the general insurance industry in Australia. The findings were released on 10 August 2017 in a report: Australia’s general insurance industry: sapping consumers of the will to compare. The Inquiry examined competition and transparency in the home, strata and car insurance markets in Australia.
The report highlights the complex nature of general insurance and the committee is ‘deeply concerned’ by the lack of transparency in the industry. The Committee put forward 15 recommendations that it believes will maximise consumer outcomes and ensure Australians get a fair go when it comes to insurance.
The recommendations include:
- amendment to the product disclosure regime in the Corporations Act 2001, to require insurers to disclose the previous year's premium on insurance renewal notices.
- legislative change to remove the exemption for general insurers to unfair contract term laws;
".... the committee tends to agree with the view of Professors Fels and Cousins that competition in the general insurance market is not fully effective, and considers that consumers would benefit from increased competition."
Senate Economics References Committee Report
Economics References Committee - Report Recommendations
The 15 recommendations from the inquiry into the general insurance industry in Australia
Submission 1 from Professors Fels & Cousins
Submission 2 from Professors Fels & Cousins
Enhancing the consumer experience of home insurance: shining the light into the black box
Discussion paper. [Pdf size:1223 KB]