Insurers in Victoria could be sneaking in large premium increases under the cover of the fire services levy (FSL) reform, according to FSL Monitor Allan Fels.

He says some companies may indicate the levy has gone but incorporate the revenue into their base premium. Professor Fels, who is overseeing the shift from a levy on insurance policies to a tax on property owners, says this would be unreasonable price exploitation and misleading conduct.

Reports of 40% premium rises are now being investigated.

“While the monitor investigates these complaints we have a responsibility to warn the public that adverse practices may be occurring,” Professor Fels said.

Consumers renewing home and contents policies should check their quotes and raise concerns with insurers.

If a satisfactory explanation is not given the complaint should be passed to the monitor and customers should consider changing insurer, Professor Fels says.