The man tasked with overseeing the end of the fire services levy (FSL) in Victoria is to scrutinise and report on insurance prices during the transition period.

Allan Fels says he wants to work with insurers to ensure a smooth run-up to July 1 next year, when a property-based levy replaces the FSL.

“I will be tasked with monitoring and reporting on insurance prices throughout the transition period, including during this final year of the insurance-based system and the first year of the new arrangements, and will have legislated powers to investigate and take action against false, misleading and deceptive conduct and price exploitation,” he told insuranceNEWS.com.au.

Professor Fels, a former chairman of the Australian Competition and Consumer Commission, has reiterated the Victorian Government’s message that insurers must pass on the benefits of reform to customers.

Under the change, insurers will stop collecting the FSL to fund the state’s fire services and all property-owners will instead pay a charge through their council rates.

Professor Fels says legislation to establish his monitoring role will be introduced soon and will “provide supplementary consumer protection laws, as well as set out sanctions for non-compliance”.

He says the property-based charge is a major reform.

“The Government is taking steps to ensure consumers and small business are fully informed about the new system, how it will work and what they should expect during the transition.”

The monitor will be assisted by a deputy and supported with resources from Consumer Affairs Victoria and the Essential Services Commission.