A quick summary of the outcomes from the ACCC – Northern Australia Insurance Inquiry – Interim report

Here is a quick overview of the latest report.

Focus areas

Focus area 1: Measures to further improve insurance affordability and availability

Focus area 2: Detailed case studies on sub-regions in northern Australia

Focus area 3: Examination of premium adjustments

Focus area 4: Identify and investigate barriers to expansion (or re-entry)

Focus area 5: Understanding non-insurance and how it may be addressed

Recommendations

Recommendation 1: Abolish stamp duty on home, contents and strata insurance products – this one has my full support.

Recommendation 2: Re-base stamp duty; use stamp duty revenue for affordability & mitigation. – I think this is an entire community issue not just those prudent enough to insure.

Recommendation 3: Insurers to report their brands and where they are writing new business

Recommendation 4: Standardise definitions of prescribed events

Recommendation 5: Review and mandate standard cover

Recommendation 6: Unfair contract term protections should apply to insurance

Recommendation 7: A link to MoneySmart should be on new quotes and renewal notices

Recommendation 8: Better understand information that falls within ‘general financial advice’

Recommendation 9: Disclose costs that count towards ‘sum insured’

Recommendation 10: Disclose the premium, sum insured and excess on a renewal notice

Recommendation 11: Extend the ban on conflicted remuneration to insurance brokers

Recommendation 12: Better information for consumers lodging a claim

Recommendation 13: ASIC approval for the General Insurance Code of Practice

Recommendation 14: Public mitigation works and expected premium reductions

Recommendation 15: Building code changes to better protect interiors and contents

Draft recommendations for consultation

Draft recommendation 1: Insurers should estimate a sum insured for customers – this could create real risks to insurers

Draft recommendation 2: Prominently publish PDSs and KFSs online with product offerings

Draft recommendation 3: Disclose premium impacts of optional inclusions or exclusions

Draft recommendation 4: National home insurance comparison website – we call this LMI PolicyComparison.com 

Draft recommendation 5: Renewal notices should give 28 days notice

Draft recommendation 6: Disclosure where premium increases are capped

Draft recommendation 7: Consider likely insurance costs before purchasing real estate

Draft recommendation 8: Requesting personal information held by insurers

Draft recommendation 9: Strata managers to be remunerated by body corporate only

Draft recommendation 10: Clear disclosure of products considered and remuneration

Draft recommendation 11: Giving consumers more control over how claims are settled – this one is going to be interesting. 

Draft recommendation 12: Clearly stated mitigation discounts

Draft recommendation 13: Information on mitigation works that could reduce premiums