QBE and Allianz have increased their NSW fire services levy (FSL) rates, effective from March 28.

QBE’s rates on fire, industrial special risk, consequential loss and construction risk policies will rise to 34% from 31.5%.

The rate for home and contents will rise to 19.5% from 17.5%, while motor will hold steady at 1%.

The current rates for Allianz are 31% for commercial and 16% for home. insuranceNEWS.com.au understands they will rise by 1% across the board.

“We had a review with our external actuaries this month and we need to increase the rates,” an Allianz spokesman said. “They haven’t been signed off yet.”

CGU says its FSL rates “are under review”.

Other insurers did not responded to questions by publishing time.

A QBE spokesman told insuranceNEWS.com.au the changes will ensure the company meets its statutory FSL obligations.

“We regularly review our rates to ensure they are appropriate for market conditions. As fire services in NSW are funded largely through insurance contributions, in the event the market grows or contracts, there will be a flow-on effect to the FSL rates required to be charged.

“While we appreciate these changes will affect premiums, all signs are that the total turnover in these products is contracting.”

NSW is the only mainland state that still has an FSL on insurance. Victoria replaced its levy with a charge on property owners in 2013.