Dan Mawer says it should be easier to find a good deal on car and home insurance. Picture: Justin Lloyd

FEDERAL Parliament will look at how to set up a government-run home and car insurance comparison service to increase competition and transparency in these $28 billion-a-year markets.

The move comes as a new report reveals the cost of some forms of cover is soaring at eight times the rate of wages — and as a campaign begins with the aim of turning “people power” into more affordable premiums.

Currently no privately run general insurance comparison service looks at more than a quarter of the market because the dominant players don’t want to compete on price. This makes it much harder to shop around.

However, the nation’s newest political powerbroker is embarking on a bid to turn the tables in Big Insurance, which reaps $9 billion a year from consumers for home cover and $19 billion for car protection.

Senator Nick Xenophon says a comparison site would help consumers. Picture: AAPSource:AAP

Independent senator Nick Xenophon will today task the Senate Economics Committee with investigating how to set up a government-run general insurance comparator — as already exists for health cover.

“This would be a major breakthrough for consumer protection,” Senator Xenophon told News Corp Australia.

Consumer network One Big Switch and News Corp Australia have begun a petition with the aim of amassing further support for the comparator.

The petition argues an independent comparison website could help to address the information imbalance between insurance companies and consumers.

California runs an independent comparison service for general insurance, as does Norway.

The government already runs one for home insurance in North Queensland only. It was established by the Coalition last year after cyclone-repaid bills led to a surge in the cost of protection above the Tropic of Capricorn.

One Big Switch has teamed up with News Corp to amass support for the independent comparator. Picture: SuppliedSource:Supplied

At the time the two major insurance companies, Suncorp and IAG, spoke out against it.

It is understood the Government has considered making the comparison service national.

The World Bank has studied public-sector comparators and found their set-up costs range from $340,000 to $2.3 million.

The Californian comparison service runs on data insurers are forced by law to provide. The Norwegians just asked for the information and it was handed over.

Insurance Council of Australia (ICA) spokesman Campbell Fuller said it rejected “calls for a government-run insurance aggregator website and any compulsion to participate” because they focus on price and oversimplify.

The push for a comprehensive government-run comparator comes as a new report commissioned by One Big Switch reveals home insurance premiums have increased 38 per cent in four years and doubled in seven.

Consumers such as Dan Mawer face difficulty finding a good deal on insurance. Picture: Justin LloydSource:News Corp Australia

“The rise in premiums is concerning in the context of recent softness in wages growth, which is placing pressure on household budgets,” the Equity Economics report said.

The ICA said there was “strong competition” in the market.

The Big Insurance Switch will aim to register interest from 30,000 Australian households and use that people power to unlock group-discounted offers on home and car insurance.

In coming days and weeks News Corp Australia will also reveal steep increases in the price of car cover and secret traps built into the pricing.

“We want to take the sting out of soaring home insurance premiums, and help everyone to find out if they’re paying far too much for their car insurance,” said One Big Switch campaign director Joel Gibson.

Making life easier for consumers

DAN Mawer is a busy man. Fathers of four-year-olds are. So he wishes it was quicker and easier to find a “good deal” on home and car insurance.

While enjoying a family day out with daughter Lillian yesterday he said welcomed moves to establish what he described as a “one-stop shop” for comparing cover.

“Often I’ve had to do a lot of ringing around to get a good deal,” Mr Mawer, 42, of Ashfield, said.

It was important that any such tool allowed users to see what they were being covered for, he said.

Mr Mawer is also keen on joining the Big Insurance Switch.

“I think collective bargaining gives more of a chance of getting a good deal,” he said.

“That sounds like something I probably go for.”

He liked that he could use any offer that emerged from the campaign as a “bargaining chip” with his existing providers.

Go to www.onebigswitch.com.au for more information.

There is no obligation to take up any offer. News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp is a shareholder of One Big Switch.