The Senate has called for submissions on setting up an independent home and car insurance comparison website, as part of its inquiry into the industry.

The inquiry’s terms of reference cover other jurisdictions’ experiences with similar comparators, the costs and benefits and the legislative steps required for the set-up.

The Senate Economics References Committee will also address industry transparency and the rising cost of cover relative to wage growth over the past decade.

The Insurance Council of Australia (ICA), which opposes a comparator, says it will co-operate with the inquiry.

Comparators have had a major impact on the UK personal lines market, but critics in Australia, including major personal lines insurers and ICA, are not convinced they help consumers. They argue comparators lead to people buying cover based on price, instead of choosing the most appropriate policy.

Submissions close on February 10. The committee will report by June 22.