Task force rec­om­men­da­tions

Pilbara News - - Front Page -

■ 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.

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