The Australian Securities and Investments Commission (ASIC) is warning car insurers about rising premiums and poor transparency.
The watchdog says car insurers in the country are leaving policyholders guessing about why their premiums keep rising.
A review by ASIC has found significant gaps in transparency, as motor vehicle insurance premiums rose by 8% in the 12 months to July 2025, following an increase of more than 42% between 2019 and 2024. The increases have added further pressure to household budgets.
The report assessed eight insurance brands across five insurers, representing around 72% of the market, alongside consumer research involving more than 2,000 Australians. The regulator also found that none of the insurers had adequately explained the causes and factors affecting individual premiums in quote and renewal documents, or why prices had changed from the previous year.
ASIC Commissioner Alan Kirkland called for greater transparency. “With many households already facing cost-of-living pressures, consumers deserve to know why premiums are going up so they can decide whether to stay with their current insurer or shop around,” he said.
ASIC found that most insurers provided only generic explanations in supplementary documents, with some providing little or no explanation at all.
Mr Kirkland said this approach “fails to meet the needs of customers trying to understand the reasons for significant price increases”, putting renewed pressure on insurers to improve how they communicate premium changes to policyholders.