Victoria’s Fire Services Levy (FSL) Monitor expects policyholders renewing this quarter to see significant reductions on total premiums.

Insurers increased FSL rates last year, then cut them this year before the removal of the levy on July 1.

Monitor Allan Fels says since premiums were relatively high in the December quarter last year, there should be large reductions this quarter.

“Active monitoring and prompt enforcement action by the monitor will be taken to ensure this outcome occurs,” his report on the September quarter says.

The report also lists complaints by insurer brand.

The most complained-about brand was IAG and RACV-owned Insurance Manufacturers of Australia. It accounted for 45% of complaints off an 8% share of the residential and commercial market.

Suncorp-owned GIO accounted for 13% of complaints, with 6% market share, while Apia recorded 12% of complaints from a 3% market share.

AAMI had 10% of complaints from 7% market share and Allianz accounted for 6% of complaints, with 9% market share.

Professor Fels says two brokers are under investigation – one over representations on an increase in a base premium and the other for fee increases concurrent with the FSL’s removal.

The monitor is considering developing an online comparison tool to help consumers and small businesses buy property cover.

“It is possible for consumers and policyholders to obtain multiple quotes themselves, but only by the time-consuming and repetitive process of visiting each insurance company’s website, one by one, and supplying personal and property details each time.”

The monitor had received almost 5000 enquiries and complaints at September 30, up 52%. They account for about 0.1% of all relevant residential and commercial policies in Victoria.

Consumers complained most about double charging, followed by claims of large base premium increases, up to 50%.

Insurers say some premiums increased because properties were repriced to reflect flood or bushfire risk, and because of higher reinsurance costs.