The Insurance Council of Australia (ICA) supports the repeal of price-signalling provisions in the Competition and Consumer Act 2010, as recommended in a review led by Ian Harper.

The Government is consulting on an exposure draft of the amendments, including repealing provisions prohibiting the anti-competitive disclosure of information.

“While we recognise the price-signalling provisions are confined in their application to the banking industry, it is important to note that in the general insurance industry there is intense consumer and investor interest in pricing,” CEO Rob Whelan says in a submission.

“Given the prudential strength of our members is dependent upon them pricing accurately the risks they cover, movement in prices is a frequent focus of the questions posed publicly to general insurers – this is particularly so after a major catastrophe event.”

The Harper Competition Policy Review, which released its final report last year, concluded price-signalling provisions have the potential to overreach and affect pro-competitive conduct.

“Private price disclosure to a competitor will generally have more potential to harm competition, because it may be used to facilitate collusion among competitors,” the report says.

“However, private disclosure may be necessary under some business circumstances or in the ordinary course of business, particularly in connection with joint ventures or similar types of business collaboration. For that reason, a per-se prohibition has the potential to overreach.”

It suggests the provisions be replaced by extending Section 45 of the Competition and Consumer Act to cover concerted practices that could discourage competition. This is supported by ICA.

ICA has also asked for changes to the Australian Competition and Consumer Commission draft framework for concerted practices guidelines, to recognise “consumer and investor interest in pricing”.

Submissions on these reforms must reach the commission by 5pm on October 28.