INSURANCE AGGREGATORS

In reply to the Hon. J.M.A. LENSINK (12 May 2009).

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy): I am advised:

The provision of insurance services by Insurance companies is regulated by the Australian Securities and Investment Commission (ASIC). Insurance aggregators are relatively new entrants to the insurance industry and ASIC are keen to hear of any practice that appears to be deceptive or misleading.

Where such matters come to the attention of OCBA, my officers will refer these to ASIC where appropriate. I have also written to the Commonwealth Minister for Competition Policy and Consumer Affairs to draw his attention to this matter.

With respect to whether I would issue any public warning or notification, this would best be undertaken by ASIC as they are the regulator and would be the agency gathering complaint information on this alleged practice. As more consumers begin to rely on the internet for information, I have suggested that if ASIC had evidence of misleading practices that consideration be given to issuing a warning.

I am advised that no formal complaint has been lodged with the Office of Consumer and Business Affairs (OCBA) against an aggregator.