The Minister for Financial Services & Regulation, Joe Hockey, has today asked the Australian Competition and Consumer Commission for a report on significant increases in general insurance premiums following the collapse of HIH.
"The insurance industry has suggested that massive premium increases are linked to the Sydney hail storms and additional capital requirements. I want to find out if this is true," the Minister said.
"I want the ACCC to use all of its powers and resources to find out for consumers the reasons for these increases."
The Minister said he had received numerous complaints about the enormous increases in some insurance premiums over the last few weeks.
"Car and household insurance premiums have risen significantly and consumers deserve an explanation.
"The ACCC is best placed to provide the advice given that some commentary from State Governments has been misleading."
The Minister reiterated that in some cases State taxes represented up to 40% of an average insurance premium [see attached] and the extra levies in NSW and Victoria would further increase premiums for consumers.