29 Aug NSW Emergency Services Levy Price Comparison Changes
From 1 July 2019, insurers are required to comply with the NSW Emergency Services Levy (ESL) Insurance Monitor’s revised price comparison order to provide a year on year price comparison to NSW small business and retail customers, on property and motor policy renewals.
This means insurers and their representatives must provide customers with a year on year price comparison.
What does this mean for customers?
The change will provide greater consistency, transparency and simplicity for your customers in terms of the information set out in their renewals.
GT Insurance has implemented a change across our systems to include a price comparison table on all renewals and all renewal reminders of applicable insurance policies. We have developed a dedicated ESL page for the price comparison information which will be included in your customers’ renewals and renewal reminders.
For your customers, the changes will be effective for all motor policies with a renewal effective date of 15 July 2019 onwards.
Which policies are affected?
All commercial motor fleet and transport package policies sold to domestic and business customers are affected.
GT Insurance’s approach to the change
|National approach||While the change is only required for NSW based risks, GT Insurance is taking a national approach for all motor fleet and transport package policies.
This means that risks based in other states will also show the price comparison, ensuring consistency and greater disclosure for your customers.
|Aggregated premium||GT Insurance will show the actual premium that has been paid to GT Insurance in the previous year (including any mid-term adjustments); we call this the aggregated premium.
The rationale for using aggregated premium is to reduce potential errors in calculating annualised premiums and avoid any confusion for customers.
|Product vs policy level||We will show the comparison at a policy level as these policies often have multiple products.|
It is the responsibility of the broker to include the intermediary fee on their renewal notices. Commission will not be itemised in the comparison table as this forms part of the base premium.
What action is required?
GT Insurance will issue the price comparison with your customers’ renewal documentation automatically as outlined above. As a broker, you are required under the NSW ESL Insurance Monitor’s revised price comparison order to provide this year on year price comparison to NSW small business and retail customers, on property and motor policy renewals.
Any intermediary fees (excluding commissions) must be included by brokers in customers’ renewal documentation.
Global Transport & Automotive Insurance Solutions Pty Ltd ABN 93 069 048 255 | AFS Licence No. 240714 (trading as GT Insurance) as agent for the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 | AFS Licence No. 234708