Insurance Brokers Challenge Opposition’s Divestment Strategy

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.

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:

Insurance News

Clear

IAG's Recommendations to the Federal Inquiry on Small Business Insurance

14 Apr 2026: Paige Estritori

Insurance Australia Group (IAG) has recently submitted its recommendations to the Federal Parliamentary Joint Committee on Corporations and Financial Services, focusing on the Inquiry into Small Business Insurance. In its submission, IAG outlines how small business insurance operates across its retail and intermediated channels and provides recommendations to support stronger, more sustainable outcomes for small businesses in Australia. - read more

ASIC Directs 11 Insurers to Refund $815 Million to Customers

14 Apr 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has ordered 11 insurance companies to refund a total of $815 million to customers following an investigation into pricing failures and governance issues. The investigation revealed that these insurers engaged in complex and reckless pricing models, lacked appropriate governance systems, and failed to adequately monitor and control their distributors, leading to millions of customers being overcharged. - read more

Rising Insurance Costs Threaten Australian Small Businesses

13 Apr 2026: Paige Estritori

Small business insurance premiums in Australia have surged by up to 60% since 2019, rendering coverage increasingly unaffordable for many enterprises. The Insurance Council of Australia attributes this escalation to outdated liability laws, escalating legal costs, and governmental red tape. - read more

Significant Decline in Australian Commercial Insurance Rates in Late 2025

13 Apr 2026: Paige Estritori

In the fourth quarter of 2025, Australian commercial insurance rates experienced a notable decline, with prices dropping by 12%. This marks the most significant decrease among the eight regions monitored by Marsh's Global Insurance Market Index. The primary driver behind this trend is heightened competition within the market, as international insurers have expanded their presence, providing additional capacity that has contributed to the rate reductions. - read more

Queensland Small Businesses Struggle with Escalating Insurance Costs

13 Apr 2026: Paige Estritori

Insurance affordability has emerged as one of the most pressing challenges facing small businesses across Queensland and increasingly across Australia. A recent submission by Business Chamber Queensland to the Parliamentary Joint Committee on Corporations and Financial Services outlines why insurance products are not keeping pace with the realities small businesses face, and what can change. - read more

Click for more Insurance News