The Australian Competition and Consumer Commission (ACCC) has released terms of reference for its inquiry into the supply of home, contents and strata insurance in Northern Australia.
Matters to be considered by the inquiry include:
- the pricing and availability of insurance to consumers in northern Australia;
- the key cost components of insurance pricing in northern Australia and how they have changed over time, particularly catastrophe risk;
- the terms and conditions on which insurance is supplied;
- the competitiveness of markets for insurance in northern Australia;
- the existence and extent of any barriers to entry, expansion and/or exit in the supply of insurance in northern Australia;
- any impediments to consumer choice, including transaction costs, a lack of transparent information, or other factors;
- identifying any regulatory issues, or market participant behaviour or practices that may not be supporting the development of competitive markets for insurance in northern Australia; and
- the profitability of insurers through time and the extent to which profits are, or are expected to be commensurate with risk.
The inquiry commenced on 1 July 2017, and an issues paper will be released for public comment in late 2017.
For a full summary of the issues, email us a request at [email protected]
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