Insurance Council of Australia President Raymond Jones has attacked the states and territories over “alarmingly high” insurance taxes, and called for an inquiry into taxes affecting the affordability of insurance.

Mr Jones’ criticism comes after a spate of bushfires that revealed a high level of non-insurance, and takes advantage of the fact that the Federal Treasury is concentrating on the upcoming Budget.

Figures from the ACT bushfires show that 40% of house structures were underinsured, while 30-50% of home and contents were insured below realistic replacements costs.

Mr Jones said the Federal Government provides a 30% rebate for private health insurance, but property insurance is subject to “sin” taxes similar to those applied to tobacco and alcohol. On average, one in four Australian homes have either no building or contents insurance.