Insurance companies would have to explain why policy prices are increased and by how much, in new measures being considered by the federal government.
The Treasury is considering requiring insurers to include the previous year’s premium on renewal notices and explain what has changed to make their policy more expensive, reported Daily Telegraph.
The changes could be introduced by Treasury in a move to make pricing transparent and drive competition, after a similar trial in the UK led to 18% more people negotiating a better deal or switching providers.
The news organisation quoted Financial Services Minister Kelly O'Dwyer, who says the current disclosure rules make it difficult to understand insurance.
"The government looks forward to working with the industry on these reforms as it has an important role in improving the information provided to consumers," she said.