Insurance CEOs solemnly swear they won’t apply Emergency Services Levy

Richard Laycock 27 April 2017 NEWS

Executives gathered around a conference table come to an agreement

Over 100 executives from NSW insurance companies sign pledge.

CEOs from every major NSW insurance company have come together to sign a pledge declaring they won't apply the Emergency Services Levy (ESL) once funding for NSW emergency services is removed from property insurance policies.

The Insurance Monitor, Professor Allan Fels AO, was enlisted by the NSW Government last year to supervise the scrapping of the ESL from insurance policies from 1 July 2017.

Fels sought the declarations from the CEOs as part of the oversight program, which aims to ensure that consumers get the most from the new funding arrangements.

“Over 100 insurance companies, including NSW’s largest insurers, have committed to doing the right thing for consumers. I welcome these CEO declarations as a sign of intent to comply with the strong law adopted by the NSW Parliament in relation to the removal of ESL," Fels said.

The removal of the ESL will result in a precipitous drop in the cost of property insurance, reducing average policy premiums by roughly 20%.

Fels warned insurance companies that fail to pass on the reduction to their policyholders or try to mislead consumers could be subject to fines of up to $10 million.

The major insurance companies that have signed the pledge include:

Insurance company Brands
AAI Limited Includes: AAMI, APIA, Bingle, GIO and Suncorp
Allianz Australia Insurance
Auto & General Insurance Co Includes: Aussie, Australia Post, Budget Direct, Dodo and Virgin Money
Commonwealth Insurance
The Hollard Insurance Company Includes: Real Insurance and Woolworths
Insurance Australia Group Includes: CGU, Coles, Insurance Manufacturers of Australia, NRMA, and WFI
QBE Insurance Includes: Elders Insurance
Westpac General Insurance
Youi
Zurich Australia

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Picture: Shutterstock

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