REC339-4425

The Committee recommends that the Australian Government investigate mechanisms to require insurers to more clearly communicate the basis for the price of premiums. This could include:
- at a high level, highlighting the nature of risk for the property for each major peril type (for example, a traffic light rating system)
- last year’s premium alongside the current year’s premium, along with a descriptive analysis of why there has been a change if it is material (for example, over 10 per cent). The analysis could include highlighting different factors that may influence pricing such as changes in building costs or changes in the assessment of one or more perils, or the impact of household or community level mitigation, without attaching numerical estimates to each factor.