Insurance company CEOs have signed a declaration vowing they will not apply the emergency services levy (ESL) on NSW policies after its required removal in July.

ESL Insurance Monitor Allan Fels sought the declarations under moves to ensure policyholders fully benefit from new funding arrangements and that companies do not seek to raise base premiums in anticipation of the levy’s removal.

“I welcome these CEO declarations as a sign of intent to comply with the strong law adopted by the NSW Parliament in relation to the removal of the ESL,” Professor Fels said.

“When a CEO gives a public commitment like this, it means their credibility is on the line.

“They are expected to pay even greater attention to ensuring their company is fully compliant with the new law and our guidelines.”

Professor Fels says insurers need to drop prices by up to 20% for an average property insurance policy issued after July 1, while in commercial lines reductions are expected to be about 30%.

Senior executives signing the declaration included Anthony Justice from IAG, Anthony Day from Suncorp, Niran Peiris from Allianz, Pat Regan from QBE, Helen Troup from Commonwealth Insurance, Raj Nanra from Zurich, Richard Enthoven from Hollard, Daniel Matthee from Youi and Ram Kangatharan from Auto & General,

Professor Fels has arranged a public inquiry for May 16, when companies will be asked to explain how they calculate property premiums and their plans for removing the levy.