NIBA and ICA welcome Emergency Services Levy reform

NIBA and ICA welcome Emergency Services Levy reform | Insurance Business Australia

Property

“Great news for anyone who takes out insurance”

The National Insurance Brokers Association (NIBA) has joined insurance industry stakeholders and welcomed the NSW Government’s decision, announced earlier today, to reform the Emergency Services Levy (ESL).

NIBA CEO Phil Kewin (pictured above) said the announcement was “a positive move towards creating a fairer and more equitable system for all.”

“The current ESL model penalises responsible home and business owners who invest in insurance to protect their assets,” said Kewin in a media release.

The release said NIBA has often highlighted the need to rectify this imbalance.

The release said the move “clearly demonstrates” the government understands the impact of this tax on the State’s capacity to recover from extreme weather events.

“Reforming the ESL will be a major win for insurance affordability in New South Wales, an issue that is being discussed around kitchen tables and in small businesses around the State,” said Hall.

The ICA expects an abolition of the ESL on insurance to reduce the cost of home coverages by up to 15%. The peak insurer body has campaigned for more than a decade for the removal of the tax.

Tasmania is the only other state with an emergency levy on insurance premiums. That government has also announced a process of reform.

What do you think of reforming the ESL in NSW? What could replace it? Please tell us below