{"id":"F2022L00030","name":"Competition and Consumer (Price Monitoring—General Insurance Policies) Direction 2022","slug":"competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102240,"registerId":"commonwealth-F2022L00030-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Competition and Consumer (Price Monitoring—General Insurance Policies) Direction 2022.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under the Competition and Consumer Act 2010.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\nNote Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n In this instrument:\n\n> ANZSIC means the Australian and New Zealand Standard Industrial Classification 2006 (1292.0) published by the Australian Statistician, as revised and in force on the day this instrument commences.\n\n> Note: In 2021, the text of the Australian and New Zealand Standard Industrial Classification 2006 was accessible through the Australian Bureau of Statistics website (http://www.abs.gov.au).\n\n> auxiliary insurance industry means the auxiliary insurance services (class 6420) as classified in ANZSIC.\n\n> contents, in relation to a residential building, has the same meaning as in the Insurance Contracts Regulations 2017.\n\n> covered insurance policies means insurance cover in respect of the destruction of, or damage to one or more of the following:\n\n (a) a home building;\n (b) contents of residential building;\n (c) a strata title residence;\n (d) commercial premises, and contents of those commercial premises, if the sums insured do not exceed $5 million.\n\n> exempt supply has the same meaning as in Part VIIA of the Act.\n\n> general insurance industry means the general insurance industry (class 6322) as classified in ANZSIC.\n\n> good has the same meaning as in Part VIIA of the Act.\n\n> home building has the same meaning as in the Insurance Contracts Regulations 2017.\n\n> price has the same meaning as in Part VIIA of the Act.\n\n> real property has the same meaning as in A New Tax System (Goods and Services Tax) Act 1999.\n\n> residential building has the same meaning as in the Insurance Contracts Regulations 2017.\n\n> service has the same meaning as in Part VIIA of the Act.\n\n> State or Territory authority has the same meaning as in Part VIIA of the Act.\n\n> strata title residence has the meaning given by subsection 33(3) of the Insurance Contracts Regulations 2017.\n\n> supply has the same meaning as in Part VIIA of the Act.\n\n> the Act means the Competition and Consumer Act 2010.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Price monitoring of general insurance policies","content":"## Part 2—Price monitoring of general insurance policies","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Object","content":"#### 5 Object\n\n The object of this instrument is to monitor prices, costs and profits relating to the supply of insurance cover in respect of the destruction of, or damage to, a home building, contents of a residential building, a strata title residence, and certain commercial premises and contents of those commercial premises, before and after the introduction of a cyclone and related flood damage reinsurance pool.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Commission to monitor prices","content":"#### 6 Commission to monitor prices\n\n (1) Under subsection 95ZE(1) of the Act, the Commission is directed:\n (a) to monitor prices, costs and profits relating to the supply of goods and services in the general insurance industry and the auxiliary insurance industry; and\n (b) to give the Minister a report on the monitoring at least once each calendar year during the period 1 January 2022 to 30 June 2026.\n (2) Subsection (1) does not apply in relation to:\n (a) an exempt supply; or\n (b) the supply of a good or service by a State or Territory authority.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Direction to give special consideration to specified matters","content":"#### 7 Direction to give special consideration to specified matters\n\n Under subsection 95ZH(1) of the Act, the Commission is directed to give special consideration, to:\n (a) the object of this instrument; and\n (b) monitoring the prices, costs and profits relating to the supply of covered insurance policies (regardless of when the policies were entered into) before and after the introduction of a cyclone and related flood damage reinsurance pool; and\n (c) not monitoring the prices, costs and profits relating to the supply of insurance cover unrelated to the supply of covered insurance policies;\n in exercising its powers and performing its functions under Part VIIA of the Act in relation to the direction in section 6.","sortOrder":8}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument maintains a tight, focused scope. It was clearly designed from the outset to monitor specific insurance products in connection with the cyclone and flood reinsurance pool reform, and it does exactly that without mission creep."},"complexity_factors":["Short instrument with only 7 substantive sections across 2 Parts","Heavy reliance on external definitions—14 defined terms, most of which simply import meanings from other legislation (Competition and Consumer Act 2010, Insurance Contracts Regulations 2017, GST Act)","Single operational mechanism: a direction to the ACCC under existing statutory powers (Part VIIA of the Competition and Consumer Act)","No nested exceptions or complex conditional logic—only two straightforward exemptions (exempt supplies and State/Territory authorities)","Clear temporal scope (1 January 2022 to 30 June 2026) and specific subject matter focus"],"plain_english_summary":"This instrument directs the ACCC to monitor prices, costs and profits for selected property insurance (home buildings, contents, strata and small commercial) from Jan 2022 to June 2026 to assess effects before and after a new government-backed cyclone and flood reinsurance pool. It affects insurers (whose pricing will be scrutinised), the ACCC (reporting to the Minister) and consumers — ensuring transparency so any reinsurance savings are passed on rather than absorbed as extra profits."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument directs the Commission to undertake monitoring and reporting under existing Part VIIA powers rather than changing substantive law. It limits monitoring to specified insurance supplies (covered insurance policies as defined at s4), sets a limited timeframe and reporting frequency (s6(1)(b)), and excludes exempt supplies and State/Territory authorities (s6(2)). It therefore narrows the operational focus of monitoring but does not expand regulatory powers beyond monitoring and reporting (see ss5–7 and s3 authority)."},"complexity_factors":["Cross‑references to Part VIIA of the Competition and Consumer Act 2010 and specific subsections (s6 cites subsection 95ZE(1); s7 cites subsection 95ZH(1)) create reliance on statutory powers and procedures outside the instrument.","Definitions depend on external instruments and classifications: ANZSIC (s4), Insurance Contracts Regulations 2017 (s4 definitions for ‘home building’, ‘contents’, ‘residential building’, ‘strata title residence’), and the GST Act definition of ‘real property’ (s4).","Narrow scope of ‘covered insurance policies’ with a monetary cap (sums insured not exceeding $5 million) adds an eligibility threshold (s4 definition of covered insurance policies).","Temporal and reporting constraints: mandated annual reporting to the Minister and a defined monitoring period (at least once each calendar year during 1 Jan 2022–30 Jun 2026) (s6(1)(b)).","Enumerated exclusions: monitoring does not apply to exempt supplies or supplies by State or Territory authorities (s6(2)), which requires identification of those categories in practice.","Directive to give ‘special consideration’ to monitoring covered policies and to avoid monitoring unrelated insurance creates interpretive judgment for the Commission (s7).","Use of industry classification (general insurance industry class 6322 and auxiliary insurance industry class 6420 under ANZSIC) requires mapping firms/activities to those classes (s4)."],"plain_english_summary":"This Direction requires the Commission to monitor prices, costs and profits in the general and auxiliary insurance industries for home buildings, residential contents, strata residences and certain commercial premises (sums insured ≤ $5 million), focused on the period before and after a cyclone‑related flood reinsurance pool is introduced. It requires annual reports to the Minister from 1 January 2022 to 30 June 2026, excludes exempt supplies and State/Territory authorities, and therefore directly affects insurers and other suppliers whose pricing may be reviewed."}},"importantCases":[],"_links":{"self":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022","history":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022/history","analysis":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022/analysis","conflicts":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022/conflicts","importantCases":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022/important-cases","documents":"/api/acts/competition-and-consumer-price-monitoring-general-insurance-policies-direction-2022/documents"}}