I received this email last night and it mirrors many phone calls and emails I have received.
“The NSW ESL Insurance Monitor has now gazetted a new Section 30 Notice which requires premium comparisons to be provided with renewal invitations and renewal schedules for residential property insurance in NSW from 1 July 2017.”
At what point does the State Government pull their head in & stop meddling in our Industry; specifically in areas that really have nothing to do with them?
Sorry to sound aggressive Allan. It’s just that, if consumers don’t like their renewal premium, they already have ample facilities at their disposal to shop around.
Further, this outrageous new “requirement” is totally disingenuous and simply propagates comparisons on price alone. It just isn’t a good look.
Where is the Government’s warning to review the quality & extent of cover, at the same time as comparing cost?
Thanks Allan – Gary. [surname and email provided]
I could not agree more. I seem to be constantly writing to politicians, most recently Nick Xenophon explaining that insurance is not about price. It is about protection and that is what the New South Wales government completely forgets. No one remembers the price of insurance when they have a claim occur.
What they want (and need) is coverage that indemnifies them for their loss or damage and has a sufficient sum insured, limit or sub-limit high enough to meet the cost. On top of this they look for a fair and reasonable claim service that is proactive and does not take a delay, deny, defend approach.
If anyone can get all of this in one policy and assure me that insurer will not have gone to God when I need them sign me up!
Let us see this for what it really is. The New South Wales government completely messed up the transition of Emergency Services Levy from the insurance industry where it has not been in Queensland since 1985 (nor in UK since the mid 1880’s) on to property rates where it ought to be so that all the community pay it. How they messed it up when they were the last state, is beyond my comprehension and one of the best examples of incompetence in government I have ever seen. How can anyone trust them after this.
One of the oldest political tricks in the book is to move the focus off your own failings and divert it elsewhere. We are constantly being demonised by the press and government and an industry who is incapable or unwilling to fight back, so we become the fall guy and the whole nonsense with the appointment of an insurance monitor who of all people should know better is showing examples of price differences between policies that are chalk and cheese.
I think every broker and insurer should comply with the request but also show just how much the New South Wales is taking of the total cost of insurance and in particular the completely unconscionable tax on tax on tax where the New South Wales Stamp Duty on insurance is a 10% on the premium, the Emergency Services Tax, and the Goods and Services Tax (“GST”), with the GST being applied to both the premium and the Emergency Services Tax. So it becomes triple tax.
If the New South Wales Government were genuine about making insurance more affordable, which only helps protect their citizens and economy by the way, then remove the taxes which is adding over 20% to the cost of home, home contents, and business property and business interruption premiums.
PS: I would also add a how to vote for one of the opposition parties in the same envelope if they gave a commitment to remove the Emergency Services Levy from insurance.