‘Loyalty tax’ for insurance is fundamentally unfair
Consumer Action made a submission to the NSW Emergency Services Levy Insurance Monitor’s Discussion Paper, Pricing Differences: New vs Existing Customers.
Insurance is a product that claims to reward loyalty. We are disappointed but unsurprised that the Monitor’s analysis revealed that customers who renew their home and contents policies pay a ‘loyalty tax’.
Consumer Action strongly supports the Monitor’s important work on insurance pricing and the development of the Discussion Paper. The Monitor’s ability to collect and analyse proving data is critical to a well-functioning insurance market that delivers fair outcomes for insurance consumers.
Read the submission here.
181220-Submission-Pricing-differences