The Insurance Council of Australia (ICA) has called on the new NSW Premier Dominic Perrottet to extend proposed stamp duty reforms to insurance and for the state to take a fresh look at abolishing the emergency services levy.

Mr Perrottet, who took over the top role from Gladys Berejiklian on October 5, pushed as Treasurer for the replacement of stamp duty on home sales with an annual land tax.

NSW is the only mainland state to still fund its emergency services through a levy on insurance, after the Government backflipped on the issue in 2017, while Tasmania is consulting on the potential removal of its levy on policyholders.

“We welcome Tasmania’s review into its Fire Services Levy and have called on the new NSW Premier Dominic Perrottet to follow other states and use his plan to abolish stamp duty on housing to also get rid of stamp duty on insurance as well as the emergency services levy,” ICA President Sue Houghton said last week.

ICA says abolishing insurance taxes and duties in all jurisdictions would immediately deliver affordability benefits and would lead to a 13% increase in annual household expenditure on home and contents cover across Australia.

“The Federal Government should consider incentivising states and territories to undertake this important reform, as the Howard Government did for the removal of various state taxes and charges with the introduction of the GST,” Ms Houghton said.

The ICA forum last week highlighted measures the industry is taking to address affordability and availability following the release of a review completed by John Trowbridge.

Ms Houghton says it has not been an easy issue but insurers have approached the problem in an open-minded way.

“While it might have been easy for us to look at this issue solely from the perspective of our own businesses, instead it’s been the broader community and economic impact of these problems and the strategic opportunities they provide which has driven our approach,” she said.

A new Business Advisory Council is set to begin work, with the review process identifying that adventure tourism and carnival businesses and areas impacted by potential abuse claims are among sectors facing acute pressures.

Mr Trowbridge, asked at the forum about the level of broker commissions, said his report recommended being open and transparent on payments.

“There is a lot to be said for just ensuring full disclosure,” he said. “Once that is done, if there are other problems they can be dealt with.”