Last week, Professor Fels revealed that NSW insurance consumers who renew a home and contents insurance policy with their existing insurer are paying on average 27 per cent more than new policyholders, in what is known as a "loyalty tax".
Releasing a discussion paper today, Professor Fels said he wanted to hear from consumers as well as insurers on the practice.
"Loyalty doesn't seem to pay when it comes to home and contents insurance," Professor Fels said.
"I'm keen to hear from not only insurance companies as to how this is explained, but also what the public and insurance consumers have to say.
"Insurance pricing in Australia is largely unexamined. There's an opportunity for the public to have a voice in this apparent trend of rewarding those who leave rather than stay."
In the discussion paper, the Monitor has analysed data gathered from insurance companies detailing the total premium price per policy of home insurance.
He reports the trends in average total premium per policy for new policies and renewing policies for the top 10 insurers in the combined home and contents insurance segment. The analysis is based on underlying data that insurers have reported to the Monitor.
Since July 2015, the gap in average total premium prices has fluctuated between $201 and $411.
Renewing customers in June this year were paying around $355 or 27% more than that charged for new customers in that month.
The Monitor reported the findings last week in his September quarterly report to the NSW Government.
Professor Fels said requiring insurers to disclose the previous year's premium price on renewal notices is one measure that will promote greater pricing transparency and encourage consumers to question the price they are being offered to renew.
In NSW, the Insurance Monitor has told insurers that they must show last year's premium on renewal notices by 1 July 2019.
