ACCC releases initial findings on northern pricing
The Australian Competition and Consumer Commission (ACCC) has released its preliminary findings on the north’s home insurance market.
Its report, released last week, shows the north makes up 5% of policies but accounts for 10% of premium revenue.
Average annual premiums were about $2000 in 2016/17, roughly double what the rest of the country is paying.
Industry submissions show insurers are increasingly pricing premiums to assessed risks at an individual property level. But feedback from public forums and submissions from consumer groups demand more transparency on how premiums are set.
The ACCC says its next report, in November, will provide more details, including workings of the home, contents and strata insurance markets.
It will also make initial recommendations on opportunities for change.
The pricing probe started last July and the ACCC is expected to submit its final report to the Treasurer by November 30 2020.