The National Insurance Brokers Association (NIBA) has raised concerns about rules governing provision of information to NSW property insurance policyholders on the abolition of the emergency services levy.

The state will fund its emergency services through a levy on council rates, rather than on insurance, from July 1 next year.

It has appointed Allan Fels to lead a monitoring office to ensure savings are passed to insurance policyholders.

The monitor last month published a notice outlining information insurers must provide to customers leading up to the change, but NIBA CEO Dallas Booth says the role of brokers is unclear.

He flags uncertainty over when the requirements extend to brokers, and says in some cases obligations may be unnecessarily applied to brokers and insurers alike.

Compliance may also be onerous, he warns.

“Our job is to work with the monitor’s office to make sure the expectations and requirements on brokers are clear and there is no confusion and no duplication,” Mr Booth told insuranceNEWS.com.au.

The information notice outlines reasons for the change in payments, when it takes effect, details about the monitor and contact details if insurance customers need more information.

Insurers were required to include the information with statements from last Monday, but the monitor has allowed a 12-week grace period before penalties are applied.

The NSW Government says the average cost of residential property insurance should be about $200 lower under the levy change.

The move brings NSW into line with other states.