The current situation with the fires in NSW shows the stupidity of imposing emergency services levies on General Insurance

The current situation with the fires in NSW shows the stupidity of imposing emergency services levies on General Insurance

I start by applauding the efforts of the fire fighters in New South Wales and Queensland including one of my brother-in-laws, a volunteer in the NSW Rural Fire Service. Yesterday morning, one of the senior officials from NSW Fire advised that, due to the catastrophic conditions expected today (12 November 2019) it is not going to be possible for the brigade to assist with property […]

Read Me

It seems to be all about taxes in NSW.

It seems to be all about taxes in NSW.

I start with the good news. I applaud the NSW Government for removing the dumping fees on asbestos waste (of up to a quarter of a tonne) in an effort to reduce the level of illegal dumping. LMI have become involved in a number of claims where innocent people have been left with massive clean up costs when they have been the victim of fly […]

Read Me

What will it take to make the Emergency Services Levy fair in NSW?

What will it take to make the Emergency Services Levy fair in NSW?

As many readers would appreciate, I have long been an advocate for the removal of emergency services levies on general insurance. Back in June 2012, I reported that the NSW Government was entering into a public discussion on the fairness or otherwise of having those prudent and risk averse to fund the majority of the fire services levy. A White Paper then came out from […]

Read Me

I fully support the review of Fire Service Levy in NZ

I fully support the review of Fire Service Levy in NZ

It was a nice way to end a tough week to read in InsuranceNEWS that the New Zealand Government is looking at alternatives to having the fire service levy heavily funded by insurance. There is absolutely no doubt that people buy less insurance when the price goes up. We saw it here in Victoria before the Black Saturday bush fires, in North Queensland due to […]

Read Me

How could the NSW Government get it so wrong on the removal of the Emergency Services Levy (TAX)?

How could the NSW Government get it so wrong on the removal of the Emergency Services Levy (TAX)?

I read the article in insuranceNEWS in which it was reported that the NSW parliamentary Legal Affairs Committee, which held an inquiry to consider the impact of the abandoned reform, “found the NSW Government’s failed implementation of [the reform] was a poor public policy decision, undertaken without adequate understanding of the complexities of the issue or the impacts of the proposed reforms.” What beggars belief is that […]

Read Me

Terrorism Levy – Another hidden tax on insurance – You will be surprised just how much – a whopping 45% of terrorism levy collected.

Terrorism Levy – Another hidden tax on insurance – You will be surprised just how much – a whopping 45% of terrorism levy collected.

Where do we start on this thorny issue… Point 1. Report after report urges governments to remove taxes on insurance. The Federal Government’s Productivity Commission inquiry on “Competition in the Australian Financial System” released earlier this year is the latest to do so. In fact, every time the issue has been looked at, going right back to the Royal Commission into the collapse of HIH, […]

Read Me

Draft Report to Government argues for the removal of distortionary taxes.

In catching up on my reading I was drawn to a draft report which was released on 7 February 2018. The final report is expected to be handed to the Australian Government by 1 July 2018. Under the Productivity Commission Act 1998, the Government is required to table the report in each House of the Parliament within 25 sitting days of receipt. The section that I […]

Read Me

Are we just giving lip service to the customer experience?

I attended an insurance breakfast last week and heard a number of people talk about the customer experience. I thought I would share just two claims that have crossed my desk. Yesterday, one of the LMI team attempted to report a landlord claim on behalf of a family who have lost a loved one. He thought he was speaking with the insurer but it appears that […]

Read Me

Whinge or fix it: that is the question!

I wrote at the time how disappointed I was that the Federal Government only earmarked a token $26.1 million towards disaster mitigation for the Federal Budget in 2017-2018.  (To get the benefit the states have to match this dollar for dollar). At the same time Federal and State politicians are complaining about the high cost of insurance. Rather than genuinely address the problem, the insurance industry […]

Read Me

Another broker angry at the NSW Government

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 & […]

Read Me