The Consumer Action Law Centre has started a campaign calling for insurers to be more transparent about premium changes.

As well as disclosing premiums for the coming year, renewal letters should also spell out last year’s premiums and the reason for any alteration, it argues.

The law centre says 86% of consumers surveyed think this will be useful or very useful. It says progress is being made in the UK, with the Association of British Insurers backing proposed changes.

The group has joined forces with consumer group Choice and the Financial Rights Legal Centre in writing to Australian insurers to request a meeting.

“What we want to do is sit down with an Australian insurer that is also willing to try this proposal, and figure out how it could work,” the law centre’s Senior Policy Officer David Leermakers told insuranceNEWS.com.au.

“If an insurer is offering a good product and value for money, this is an opportunity to tell their customers that. For example, insurers could use renewal letters to show that their prices are rising less than the industry average.”

Choice Campaigns Manager Erin Turner says listing last year’s price next to any rise would lead to stronger relationships.

“This kind of honesty shows consumers they can trust a company in the long-term, and that they’re really valued as customers.”

The Insurance Council of Australia (ICA) told insuranceNEWS.com.au it cannot comment on the campaign.

“However, ICA notes that consumers already have access to how much they previously paid through prior renewal notices and bank records,” a spokesman said.

“This information is also available by contacting their insurer.”