The Insurance Council wants the HIH Royal Commission to “clearly identify” the cause of the company’s collapse “so that everything possible can be done to try to ensure that it does not happen again”, says Executive Director Alan Mason. 

Not that ICA wants the inquiry to stop there. Mr Mason also wants Commissioner Neville Owen to identify other areas for improvement “to ensure the ongoing stability of the industry”.

Not surprisingly, the insurers are pleased that the royal commission will also examine the regulation of general insurance at Commonwealth, State and Territory levels, including different State and Territory statutory insurance and tax regimes.

“The duplication of regulation licensing and control of the industry is the cause of considerable inefficiencies, and therefore increased costs to consumers,” Mr Mason said. “State taxes on insurance are as high as 84%”.