REP 838 Road testing transparency in car insurance premiums

ASIC has published Report 838, Road testing transparency in car insurance premiums, examining how motor vehicle insurers disclose information about premiums to consumers at the time of purchase and renewal. The report draws on a review of eight insurance brands across five insurers, representing about 72 per cent of the market, together with consumer research involving more than 2,000 Australians carried out in January 2026. It follows a period in which motor vehicle insurance premiums rose by 8 per cent in the year to July 2025, after growth of more than 42 per cent between 2019 and 2024.

ASIC found that none of the insurers reviewed explained, in quote or renewal documents, the key factors affecting how a premium was calculated or why it had changed from the previous year, with most providing only generic explanations in supplementary materials and some providing no explanation at all. The accompanying consumer research found that 67 per cent of consumers stay with the same insurer and 40 per cent do not shop around or compare at renewal, that 68 per cent do not contact their insurer despite 31 per cent of those who do receiving a lower premium, and that many consumers are unaware of the cost difference between paying by instalments and paying annually.

The report is a regulatory review and consumer research publication rather than an enforcement action, and does not itself impose new obligations on insurers. It is relevant to general insurers and intermediaries involved in motor vehicle insurance distribution, and sets out specific examples of poorer and better practice in premium disclosure that ASIC says insurers should consider when reviewing their own documents.