Insurance CEOs solemnly swear they won’t apply Emergency Services Levy
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:
|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|
|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|
- Victoria floods: How much food spoilage will your home insurance cover?
- Mouse plague not covered by home insurance, with one or two exceptions
- Ex-Cyclone Seroja: What can home insurance cover?
- Flood-hit Australians can claim more from their home insurance than they realise
- Got flood damage? Here are the 3 things you should do right now