Territory Insurance Office “We’re for Territorians” hiked the premium of a long-time customer in the Alice Springs rural residential area by about 40 per cent, from $2382 to $3206, a difference of $824.

That’s even taking into account a no claim bonus of 30 per cent.

Territory Insurance Office (TIO) is a trading name of the insurer Allianz Australia Insurance Limited. Neither TIO nor Alliance would answer questions about the massive hike.

The Insurance Council of Australia said it would respond but 24 hours after emailing questions, following a discussion with a media person, we still have no replies.

We asked: Are there increases in home insurance premiums in the NT? If so, for what reason? If so, by how much?

And: Do they differ between Darwin and Alice Springs? Give figures, please. Are there occasions of around 50 per cent hikes? If so, based on what?

Withholding of information is routine behaviour by the industry, says Tom Abourizk, head of policy at Choice.

He says the increase in the case of the Alice Springs person is “very perplexing”.

It is common for insurance companies to treat their assessment process as confidential.

It is often a result of changes to insurers’ own re-insurance arrangements, at times with multinational companies.

Mr Abourizk says it’s not uncommon for insurers to hike premiums a year or two after a client signs on, in the usually safe knowledge that people are confused by insurance and keen to avoid going through the hassle of changing suppliers.

This absurdly is punishing loyal customers.

It is increasingly common that premiums are set for individual clients rather than by region.

Mr Abourizk says knowing what the reasons are for the premiums would enable the customers to take measures reducing the risk: Selecting flood safe areas for their homes, installing security devices against people breaking in.

It’s not clear if the industry is reacting to actual pay-outs or to what the media are reporting, including crime.

“Choice has called for a risk database so people can understand what risks insurers are concerned about, engage with them, and if they can address that risk, have a right to get a better price,” he says.

Consumer’s weapons against ballooning premiums include shopping around.

Mr Abourizk says page 60 of the Northern Australia Insurance Inquiry by the Australian Competition and Consumer Commission simplifies how insurers set premiums.

Declaration of interest:  The writer is a customer of TIO.
This article appeared on  Alice Springs News  on 30 August 2024.