IAG welcomes NSW Government commitment to reform the Emergency Services Levy (ESL)

IAG, Australia’s largest general insurer with brands including NRMA Insurance, CGU and WFI, today welcomed the NSW Government’s commitment to reform the Emergency Services Levy (ESL) which will benefit people and businesses across the State.

Under the current model, insurers collect the ESL from policyholders to help fund the State’s emergency services.

The ESL adds a significant additional cost to home and business insurance premiums, which means only those people and businesses who take out insurance contribute under the current funding model.

For more than a decade IAG has urged governments to reform the ESL and find a fairer, more efficient, and more sustainable approach to funding emergency services.

IAG Managing Director and CEO Nick Hawkins said reforming the ESL will have an immediate impact on insurance affordability for households and businesses across NSW.

“We welcome today’s announcement by the Minns Government and the opportunity to improve insurance affordability,” Mr Hawkins said.

“Reforming the ESL will help ensure that our emergency services have the funding they need to keep people safe, while helping to make insurance as affordable as possible for people and businesses across NSW.

“IAG has long advocated for the removal of taxes and levies from insurance to ensure as many people as possible can access the support we provide.

“We play a critical role in helping people, businesses and communities recover when disasters strike. Making insurance more affordable means our State will be better prepared, better protected and more resilient into the future.”

IAG is dedicated to working with the NSW Government on the reform of the ESL through its consultation process.