Analysis of demand for home and contents insurance

The extent to which households are not insured is an important issue for the Insurance Council of Australia (ICA), the insurance industry and policy makers. The paper presents the results of an empirical study on the factors that influence insurance demand and result in households being uninsured. While the study methods are technical the paper is written for a general audience. This paper builds on the previous work commissioned by the ICA on the factors that affect the demand for insurance. A key focus of the paper is the impact of state premium-based taxes on decisions to purchase insurance. The taxes on house and contents insurance include stamp-duties that are applied in every jurisdiction (but are being removed in the ACT) and an emergency service levy (ESL) that was in place in a number of jurisdictions but that now is only applied in NSW.

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