HOME and motor insurance premiums could face fresh pressure if proposed fee increases by the Financial Services Commission (FSC) are approved, with general insurers potentially facing about $500 million in additional regulatory costs.

The proposed increase is not a direct charge on policyholders. It would be paid by general insurance companies to the Financial Services Commission (FSC). However, insurers may eventually try to recover some of the added cost through higher premiums. That is why the proposed FSC increase could eventually matter to policyholders.

The FSC is seeking parliamentary approval to amend the Insurance Act for fee changes across the industries it regulates as it tries to close a persistent operating deficit. The regulator reported a $502.4-million net deficit for the year ended March 2025 and expects a $407.3-million deficit for the year ending March 2026.