Not surprisingly, the industry felt the need to defend itself against the comments of the attorneys-general. ICA Executive Director Alan Mason said the states’ law leaders have “missed the mark” about the way the industry is regulated.

Apart from the General Insurance Reform Act, “they also seem to be unaware that the ACCC has been conducting price monitoring of insurers since last year… and is in the process of six-monthly monitoring for the next two years,” Mr Mason said.

He said the “political rhetoric” about profiteering was not supported by independent reports or even the ACCC’s own March report. “This report confirmed that insurers are suffering substantial losses on liability classes of business.” 

He also attacked the call for scrutiny of insurers’ so-called “collusive” and “anti-competitive” practices. “At no time has there been any suggestion of such practices in the industry and if anyone has any evidence of this they should bring it to the notice of the ACCC immediately.”