The Victorian Bushfires Royal Commission released a discussion paper this morning aimed at inviting comment on possible reforms to the fire services levy (FSL) and insurance.

The paper raises key issues for comment such as whether to widen the FSL with an additional levy on non-insured and underinsured properties or whether to introduce compulsory property insurance.

It is being released to help interested parties comment on issues related to the commission’s consideration of the FSL and insurance. It provides specific questions, but individuals and organisations responding may comment on any issues relevant to the funding of fire services and insurance cover. The responses are due by December 21.

In August, insuranceNEWS.com.au reported the commission’s interim report had revealed widespread opposition to the FSL being part of voluntary insurance.

Most of the 65 insurance-related submissions tabled called for reform of the levy, which is charged on premiums in NSW, Victoria and Tasmania. CGU called for a wider funding base recognising fire services as a public good, and RACV Insurance said the FSL “is a major contributor to non-insurance and underinsurance”.

The royal commission will deliver its findings in July next year.

Insurers received around 10,040 claims following the devastating February bushfires, with insured losses of $1.07 billion. An estimated 30% of homes were not insured.

The royal commission’s paper can be downloaded at www.royalcommission.vic.gov.au/discussion-paper.