Insurance is becoming less affordable but more profitable

Home and Car Insurance premiums are rising at an average of 16% p.a. - the fastest rate in 22 years according to the ABS - in the middle of a cost of living crisis.

Meanwhile, profits at the biggest insurers are increasing:

• At Suncorp (home of AAMI, GIO & Apia) consumer insurance profit was up 534% over 6 months,
• At IAG (home of NRMA, CGU, RACV & SGIO) net profit on a like-for-like basis was up 85% and cash earnings up 76% over 6 months, 
• At QBE, annual net profit in Australia and the region was up 131%. 

But Australian governments are doing nothing to rein in Big Insurance.

We want to see 3 reforms to stop insurance companies from over-charging Australian customers:

1. Comprehensive comparison websites so we can easily compare prices. 

Many big insurers refuse to cooperate with these websites at present, unlike other industries such as energy, telco and banking. Some insurance is subject to compulsory comparison, such as CTP insurance in NSW, and it works.

2. Ban 'price walking'.

This is the practice of charging older, loyal customers more each year despite no major change in their cover, which results in them paying as much as 34% more than new customers. The UK banned this in 2022. Australia should do the same.

3. Extend the Consumer Data Right to home and car insurance by January 2025.

This is a new, secure way to share your data with other providers and comparison services so they can help you shop around. It is due to be extended to insurance in 2024 or 2025 but the industry is already pushing back.

These are simple, practical, consumer-friendly reforms that should have happened years ago.

Australian governments, get it done!