Notice of Inquiry into the northern Australian insurance industry
On 25 May 2017 the Treasurer, the Hon Scott Morrison MP, issued a notice requiring the Australian Competition and Consumer Commission (ACCC) to hold an Inquiry into the supply of residential building, contents and strata insurance in northern Australia. The Inquiry is pursuant to subsection 95H(1) of the Competition and Consumer Act 2010.
Matters to be considered by the Inquiry shall include, but not be restricted to:
- 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.
Conduct of the Inquiry
The Inquiry will commence on 1 July 2017.
The ACCC must submit interim reports to the Treasurer by 30 November 2018 and 30 November 2019. The ACCC must complete the Inquiry and submit its final report to the Treasurer by 30 November 2020.
This is not an Inquiry in relation to any particular person or persons.
The ACCC can hold public hearings for the purposes of the Inquiry. The times and locations of any hearings will be determined and published on the ACCC’s website at a later date.
Further information about the Inquiry can be found on the ACCC’s website (www.accc.gov.au/insurance)