The Insurance Council of Australia (ICA) might develop a new insurance statistical organisation next year because Insurance Statistics Australia (ISA) doesn’t cover enough insurers. ICA wants a system which covers the entire industry, making all underwriting data available. The move is part of ICA’s moves to introduce greater transparency into the market’s pricing policies and help build public support.

ICA Executive Director Alan Mason says the industry’s biggest issue for years has been its image, and a move to make all underwriting data readily available “would cut out a lot of transparency issues”. Ever since the HIH collapse in 2001, consumers have been receiving conflicting media perspectives of the industry, and now it’s up to the industry to attempt “to undo some of the damage”.

“Consumers don’t realise that for the first time in a long while the industry has put its own house in order, and insurance companies do need capital in order to operate effectively,” he said. “This isn’t a reason for governments to back off from reform; they need to assist us in finishing the job.” 

Although ISA “has done a good and effective job” in collecting insurance data, it only covers about a third of insurance businesses, he said. “It’s essential to explain to consumers, the industry and the Government what is really happening in the industry. A statistics facility could illustrate change and give a fair synopsis of industry-related issues.”

ICA had its own underwriting statistics service until it dropped it about 13 years ago because it wasn’t a core function. ISA Manager David Minty says he is currently investigating expanding his company’s reach and is working closely with the Australian Prudential Regulation Authority to ensure it’s covering the most relevant classes of insurance. If ICA does go ahead, ISA will tender, Mr Minty said.