ASIC presses car insurers on above-inflation premium increases

Australia's corporate and financial regulator, the Australian Securities and Investments Commission (ASIC), has called on major car insurers to explain why customer premiums are climbing faster than inflation. The regulator said it examined pricing practices across the sector after receiving a rising number of complaints from policyholders about steep and unexplained increases.

ASIC found that insurers were not clearly communicating the reasons behind steep premium increases, leaving many customers in the dark about what is driving up their costs. The regulator also said long-standing customers were often not receiving meaningful loyalty benefits despite years with the same insurer, undermining the idea that staying loyal to a provider pays off financially.

The findings put pressure on car insurers to improve transparency around pricing and to demonstrate that loyal customers are not being penalized for staying with the same provider. ASIC said it would continue monitoring the sector closely and expects insurers to respond to its concerns, with further action possible if practices do not improve.