SES levy imposes $20 million IT bill on insurers
The controversial new State Emergency Service (SES) levy imposed by NSW on premiums from July 1 next year will cost insurers more than $20 million to change their IT systems.
The insurers face the additional cost because the NSW Government failed to amend the relevant disclosure section of the Fire Brigades Act when it imposed the new SES levy last month.
An industry insider who declined to be named told insuranceNEWS.com.au the total cost to industry will run to $20 million “at least”.
“If you look at the cost to each insurer, which could average $1 million, and multiply that by the number of property insurers writing business in NSW, then you get to $20 million pretty quickly,” he said.
As the law stands, compliance procedures require insurance companies to show the new levy as a separate item in schedules and notices, creating a headache for insurers who must amend IT systems to show the new charge.
The Insurance Council of Australia (ICA) is currently lobbying the NSW Government to amend the Act.
Insurers want the Government to make provision for the SES levy alongside existing levies for metropolitan and country fire services, which IT systems already handle.
The insurers face the additional cost because the NSW Government failed to amend the relevant disclosure section of the Fire Brigades Act when it imposed the new SES levy last month.
An industry insider who declined to be named told insuranceNEWS.com.au the total cost to industry will run to $20 million “at least”.
“If you look at the cost to each insurer, which could average $1 million, and multiply that by the number of property insurers writing business in NSW, then you get to $20 million pretty quickly,” he said.
As the law stands, compliance procedures require insurance companies to show the new levy as a separate item in schedules and notices, creating a headache for insurers who must amend IT systems to show the new charge.
The Insurance Council of Australia (ICA) is currently lobbying the NSW Government to amend the Act.
Insurers want the Government to make provision for the SES levy alongside existing levies for metropolitan and country fire services, which IT systems already handle.