Submission to Northern Australia Insurance Inquiry
21 Dec 2017
IAG believes that there is robust competition in the Australian general insurance industry, demonstrated by the number of insurers, the products and services they offer and digital innovation across the insurance value chain.
IAG recognises that the pace with which insurance premiums have risen in recent years in Northern Australia has caused concern for some consumers. Much of the work IAG is undertaking aims to address and balance the broader objectives of insurance affordability, disclosure, transparency, accessibility and participation.
We note the ACCC’s focus is on a range of issues and concerns in Northern Australia. We believe that these concerns must be considered in the appropriate context and consider broader economic forces and pressures, including the underlying risk cost, the increasing claims cost and the prevalence of natural perils in Northern Australia.
It is important to recognise that risk is the key driver of the price of insurance, and IAG believes that solutions focusing on risk mitigation and access to information will keep significant pressure on pricing and continue to cause rapid innovation to the betterment of the consumer.