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Australia: Regulator probes AU$3.6B in hidden insurance fee

 |  June 26, 2019

This July providers must include the price of the previous year’s policy alongside the new premium price for all home insurance renewals in the state of New South Wales (NSW).

But providers may wait until 2021 to roll out the policy across the country. The Insurance Council of Australia announced a nationwide premium comparison, which will follow a review of the industry code of practice, “will have an implementation period expected to be 12 months from January 2020”.

NSW Emergency Services Levy Insurance (ESL) Monitor Allan Fels said more than 10 million Australian households were affected by a “loyalty tax,” whereby insurance providers attracted customers with discounted rates but raised the premium at future renewals.

Full Content: Financial Review

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