The NSW Government has become the first state to introduce tort law reforms to limit damage payouts. That’s a relief to insurers, who are generally full of praise for Premier Bob Carr’s swift response to the liability insurance crisis.

Not that Mr Carr seems to care for such praise, because last week he bucketed insurers and their performance. He said he held the insurers ultimately responsible for the huge increases in premiums over the past 18 months. 

Mr Carr called for the ACCC to update a report on pricing it commissioned late last year, declaring: “Until you’ve got the insurance companies scrutinised and pressured there’s no guarantee it [the new legislation] leaks through into reduced insurance premiums costs.” 

He’s right, of course, but the insurers were scrambling to be reassuring. ICA Executive Director Alan Mason said the ACCC is already conducting a review.

He praised the lead shown by NSW, but warned the problem is a national one “to be approached by all governments in a uniform way”.

ICA has until Friday to comment on the planned reforms. “A preliminary examination of the NSW Bill suggests it will have a positive impact on the public liability problems if it passes through both Houses in its current form,” Mr Mason said.

But while he welcomed the NSW reforms, Mr Mason did add that it was disappointing that Mr Carr voiced his concerns in a public forum.