QBE has outlined its preparations for the forthcoming abolition of the NSW emergency services levy (ESL).

To the delight of the industry, the charge on insurance policies will be replaced by a property levy paid alongside council rates from July 1 next year.

“Over the next financial year, we intend to taper our [ESL] collection rates until we reach a 0% rate across our relevant products by July 1 2017,” QBE said.

“We will monitor our rates over the transition period, reviewing them at regular intervals to ensure we collect the right amount.

“Based on the current market and to ensure we are able to meet our [ESL] collection obligations, QBE has estimated that an increase in levy rates will be required for any new or renewal business from June 1 [this year].”