Health Insurance Online :: News
SHARE

Share this news item!

Insurance Brokers Challenge Opposition’s Divestment Strategy

Insurance Brokers Challenge Opposition’s Divestment Strategy

Insurance Brokers Challenge Opposition’s Divestment Strategy?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Opposition Leader Peter Dutton’s proposal to dismantle major insurance companies to boost competitiveness and reduce premiums has sparked significant pushback from industry brokers.
The suggestion, criticized as ineffective, faces opposition from those who argue that the root causes of high premiums lie elsewhere.

As noted by insurtech pioneer Scott Norton, whose alternatives have gained traction, the real issue lies in inadequate disaster preparedness. According to broker Petara Tanuvasa, premium increases are driven by insufficient measures like flood defences and firebreaks. These gaps lead insurers to elevate premiums to offset rising claims. Taxes further burden consumers, with levies such as GST, stamp duties, and fire service contributions inflating costs more.

Stacy Finnegan, COO of RepX, backed Norton’s viewpoint and stressed that local governments play a critical role in reducing home insurance claims. Enforcing building standards, avoiding development in risk-prone areas, and incorporating flood and fire-resistant requirements are crucial steps. "We stand united against severe weather patterns that heighten market volatility, instead of targeting the industry unfairly," she commented.

Additionally, some industry voices, like Tasmanian broker Greg Lewer, suggest that the real financial burdens come from other sectors. Lewer highlights the disparity between insurance and bank profits, noting that while 85 insurers collectively earned $5.9 billion last year, the Commonwealth Bank of Australia alone garnered $5.1 billion in half that time.

Given the challenges, industry stakeholders believe addressing fundamental issues rather than resorting to divestment is vital for achieving sustainable premium reductions and fostering healthy market competition.

As the debate unfolds, it remains to be seen whether policymakers will shift focus towards holistic solutions that encompass broader economic and environmental strategies, addressing taxes, disaster mitigation, and proactive local governance.

Published:Thursday, 6th Mar 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

ASIC Calls on Insurers to Enhance Cyber Security in Response to AI Threats
ASIC Calls on Insurers to Enhance Cyber Security in Response to AI Threats
07 Jun 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has issued a stark warning to the insurance sector, emphasising the urgent need to strengthen cyber defences in light of escalating threats posed by artificial intelligence (AI). In a recent open letter, ASIC Commissioner Simone Constant highlighted that the advent of advanced AI technologies has fundamentally altered the cyber threat landscape, necessitating immediate and decisive action from insurers. - read more
Comprehensive All-Risk Insurance Now Available for Large-Scale Australian Farms
Comprehensive All-Risk Insurance Now Available for Large-Scale Australian Farms
07 Jun 2026: Paige Estritori
In a significant development for Australia's agricultural sector, Harland Green, a newly established Lloyd's coverholder, has unveiled an all-risk farm insurance package specifically designed for large commercial farming operations. This initiative aims to address the complex and evolving needs of the agricultural industry by offering comprehensive coverage that encompasses various aspects of farm operations. - read more
Strategic Insurance Planning Essential for Australian Farmers Facing Rising Premiums
Strategic Insurance Planning Essential for Australian Farmers Facing Rising Premiums
07 Jun 2026: Paige Estritori
With Australian farm incomes under pressure and insurance premiums rising by up to 40% in some regions, agricultural leaders are urging producers to move away from a 'set and forget' mentality. In today's climate, being strategic with your insurance is no longer just a recommendation-it is a vital business necessity. - read more
NRMA's Exit from Farm Insurance: What It Means for Australian Farmers
NRMA's Exit from Farm Insurance: What It Means for Australian Farmers
07 Jun 2026: Paige Estritori
Urgent Update for Australian Farmers: NRMA Exits Farm Insurance Market-Here’s Your Trusted Alternative - read more
Rising Insurance Costs Impact Transport and Construction Sectors
Rising Insurance Costs Impact Transport and Construction Sectors
07 Jun 2026: Paige Estritori
Recent analyses indicate that Australian transport and construction industries are encountering substantial increases in insurance premiums, driven by overarching macroeconomic factors rather than individual business performance. - read more
Click for more Insurance News


Health Insurance Articles

Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia
Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia
In the realm of securing one’s health and wellbeing, navigating the Australian health insurance landscape can be as critical as the care received. It stands as a complex tapestry, woven with policies, premiums, and government incentives, affecting individuals and families nationwide. - read more
The Importance of Comparing Health Insurance Extras for Maximum Savings
The Importance of Comparing Health Insurance Extras for Maximum Savings
Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
How to Choose the Best Family Health Cover for Your Needs
How to Choose the Best Family Health Cover for Your Needs
With healthcare being a critical aspect of every family's well-being in Australia, securing the right family health insurance is not just a necessity but a responsibility. Recognizing the importance of this safety net is the first step towards safeguarding the future health needs of your loved ones. Balancing comprehensive coverage against affordable premiums can seem overwhelming with a multitude of plans available. - read more
Understanding Health Insurance: A Starter's Guide for Young Australians
Understanding Health Insurance: A Starter's Guide for Young Australians
Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
5 Common Mistakes to Avoid When Selecting Family Health Insurance
5 Common Mistakes to Avoid When Selecting Family Health Insurance
Choosing the right family health insurance can feel like navigating a maze. With so many options and factors to consider, it's no wonder many Australians find the process overwhelming. The stakes are high, as the wrong choice could not only impact your family's access to healthcare but also strain your finances. - read more

Knowledgebase
Insurance Policy:
Broadly, the entire written contract of insurance. More narrowly, the basic written or printed document, as distinguished from the forms and endorsements added thereto.

Quick Links: | Private Health Insurance Australia | Best Private Health Insurance | Compare Health Insurance Plans | Affordable Health Insurance | Health Insurance Quotes | Private Health Cover | Health Insurance Comparison | Top Health Insurance Providers | Health Insurance Benefits | Health Insurance Premiums | Health Insurance Policies
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.