Insurers who thought they might be getting somewhere in the public liability PR stakes were brought to a halt by the decision to give the ACCC open access to the industry’s books. As Assistant Treasurer Helen Coonan put it: “The insurance industry will have no place to run and no place to hide.”

It hadn’t been trying to run or hide, but the industry was nevertheless amazed by the decision arising from the public liability summit in Melbourne last Friday. As one insurer – who declined to be identified – put it: “The ACCC will find keeping track isn’t that easy.”

The ACCC will be provided with a standing brief to report on the industry’s market pricing every six months for two years. Its ongoing monitoring role is intended to ensure any cost savings made by the industry are passed on in the form of lower premiums. 

An experienced insurance accountant said yesterday: “Insurance market pricing is imprecise and affected by many factors. The ACCC will hopefully learn from the experience.”

The Insurance Council won’t outright condemn the decision to give the ACCC the keys, but spokesman Rod Frail said the fact that insurance operates in a competitive market means lower claims costs will automatically generate lower premiums.