NSW should follow Victoria’s example and press ahead with emergency services levy reforms, according to the Insurance Council of Australia (ICA).

The removal of the Victorian fire services levy (FSL) on insurance last July “is great news for policyholders, who have generally experienced a sharp drop in the price they pay for policies,” CEO Rob Whelan says in ICA’s annual review.

“ICA remains hopeful the NSW Government will renew its own emergency services levy reform process next year.”

FSL Monitor Allan Fels says most insurers averaged premium rate cuts of 9-37% in the Victorian Metropolitan Fire Brigade region last calendar year, and 15-44% in the Country Fire Authority region, largely due to the levy being dropped.

At the end of last year the NSW Government deferred reform of its emergency services levy and appointed Professor Fels to report on the Victorian transition.

ICA says his report is likely to suggest changes NSW might make in coming years.

“The Government has acknowledged the present system of funding, which adds more than 21% to the typical household premium, is unfair because people who are uninsured or underinsured do not contribute their fair share, but still receive the full protection of fire and emergency services.”