Treasurer Peter Costello has given the insurance industry a chance to again state its case against state monopolies by announcing a new inquiry into national competition policy.

The state-run insurance monopolies in most states – CTP and workers’ compensation – have so far not been affected by competition reviews over the past few years, even though the Federal Government, theoretically at least, could financially punish recalcitrant states and territories by withholding “competition payments”.

While the Insurance Council of Australia wasn’t commenting on the issue yesterday, the inquiry is expected to give the industry another chance to state its case for more open and fair access to insurance schemes managed by the states and territories and, where possible, the chance to compete with the public operators.

Mr Costello said in a statement that the nine-year-old competition policy has resulted in reform of the energy, transport and water sectors. The inquiry will be run by the Productivity Commission and will report back to the Council of Australian Governments in September next year.