Insurers are still failing to give policyholders clear information that enables them to compare base premiums, according to Victoria’s Fire Services Levy (FSL) Monitor Allan Fels.

Professor Fels says the cost of home insurance varies greatly and consumers need to shop around.

He says Victorian home premiums fell almost 11% in January to September last year, when they increased 4.5% on average for all Australian cities.

The state’s FSL was removed last July 1, although insurers were phasing it out before then.

Professor Fels says Australian Bureau of Statistics data shows most insurers did “the right thing by consumers” when the levy was removed.

The IAG and RACV-owned Insurance Manufacturers of Australia (IMA) was the only one of nine major insurers to raise premiums last calendar year.

“Most brands have averaged a total premium reduction of 9-37% in the Metropolitan Fire Brigade region and 15-44% in the Country Fire Authority region, largely due to the FSL coming out of the total premium,” the monitor’s December-quarter report says.

“However, IMA has averaged an increase in total premium of 9.2% across the two regions due to large base premium increases contemporaneous with charging a 0% FSL rate prior to July 1 [last year].”

IMA entered an enforceable undertaking with the monitor last month to refund $11 million to more than 200,000 RACV policyholders.

Other insurers have notified the monitor of breaches of FSL legislation and corrective action.

In the December quarter six insurance company executives were issued notices to give evidence to the monitor, and six formal statements were taken from policyholders who complained about insurers and brokers.

The monitor continues to investigate an interstate broker over insurance renewed after July 1, with the underwriter also under scrutiny. Neither have been named.

The monitor found no evidence of brokers increasing fees to coincide with the FSL abolition.

Professor Fels says enquiries and complaints grew sharply in the September quarter but dropped just as sharply in the December period.