ACCC promises forums, reports in insurance probe

THE corporate watchdog investigating the insurance industry in Northern Australia says it will hold public forums and publish reports on its inquiry.

In the May Budget, the Federal Government allocated $ 7.9 million over four years from 2017- 18 to the Australian Competition and Consumer Commission to monitor and report on prices, costs and profits in the insurance market for home, contents and strata insurance in Northern Australia.

An ACCC spokesman said the availability and relative high costs of insurance premiums in Northern Australia had been a significant concern for a number of years, particularly in areas at risk of tropical cyclone impacts.

The spokesman said the commission was building a specialist team for the North- ern Australia Residential Insurance Unit. “The ACCC has offices nationally, including Townsville and Darwin, and, in undertaking this inquiry, we will be listening to concerns from communities across Queensland, the Northern Territory and Western Australia through public forums,” the spokesman said.

According to the commission, it will focus on a range of competition, consumer and regulatory issues, including:

• Pricing and availability of insurance to consumers in Northern Australia;

• Any impediments to consumer choice, including transaction costs, a lack of transparent information, or other factors;

• Key cost components of insurance pricing in Northern Australia and how they have changed over time, particularly catastrophe risk;

• Existence and extent of any barriers to entry, expan- sion or exit; and

• Profitability of insurers through time and the extent to which profits are commensurate with risk.

The commission’s spokesman said its role would extend to the monitoring of prices, costs and profits in the sector.

“The ACCC expects to publish an issues paper once the inquiry has commenced. We will also publish interim reports throughout the inquiry,” the spokesman said.