Monitor examines insurers’ levy practices as axe looms
The NSW Emergency Services Levy Insurance Monitor has consulted six companies about their approach to managing the charge ahead of its expected removal.
In November, the regulator followed up with IAG, Allianz, QBE, Suncorp, Auto & General and Guild Insurance after earlier meetings discussed how they collect the levy and calculate rates.
It has also asked about ESL refunds, complaints and communications management, according to the monitor’s December-quarter update.
The monitor plans to release guidance for insurers on its expectations as the reforms are introduced.
In 2023, the state government said it would remove the levy from premiums and shift to a different funding model for fire and emergency services, and it later appointed the Independent Pricing and Regulatory Tribunal as the ESL Insurance Monitor.
The monitor role involves giving the community confidence that insurers are not overcharging as the state moves to a new arrangement.
Last year’s state budget papers said the government is committed to reforming emergency services funding and “continues to work to design a replacement levy”, but no announcements have been made on when the reform will happen.
The monitor says it has continued to engage with NSW Treasury, which is leading the reforms.