Task force recommendations
■ A sustainable way of reducing premiums over the long run is through mitigation.
■ Governments can take relatively low-cost measures to promote mitigation such as education and research.
■ The insurance industry should develop insurance pricing systems which provide greater recognition of mitigation action and increased scope for policyholders to assume more responsibility of risk.
■ The insurance industry should improve disclosure of risk and responsiveness to concerns.
■ Governments could directly subsidise mitigation measures for low-income households.
■ A reinsurance pool is more feasible than a mutual as it could promote competition however, it would be difficult to ensure cost reductions for insurers were passed on to customers and the Government would assume “significant risk” in order to achieve reductions in premiums.