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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Human Factors Identified as Leading Causes in Major Truck Accidents

14 Mar 2026: Paige Estritori

Recent findings from the National Truck Accident Research Centre's (NTARC) 2025 Major Incident Investigation Report have brought to light the significant role human error plays in major truck accidents across Australia. The report, supported by National Transport Insurance (NTI), indicates that human factors such as inattention, distraction, and inappropriate speed are the predominant causes of these incidents. - read more

AFCA Sides with Freight Company in Dangerous Goods Disclosure Dispute

14 Mar 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a freight company in a dispute over the disclosure of transporting dangerous goods. This decision provides valuable insights into the obligations of transport companies regarding insurance disclosures. - read more

Navigating Rising Premiums: Challenges for Australian Insurers in 2026

14 Mar 2026: Paige Estritori

In 2026, Australian insurers are confronting a trio of significant challenges: escalating premium costs, persistent cyber threats, and a tightening labour market. These issues are reshaping the industry's priorities and strategies. - read more

The Future of Insurance: Australia's Insurtech Market Set for Explosive Growth

14 Mar 2026: Paige Estritori

Australia's insurtech sector is on the brink of a significant transformation, with projections indicating a surge from $377 million in 2025 to an impressive $4.2 billion by 2034. This anticipated growth, at a compound annual growth rate (CAGR) of 30.68%, reflects the increasing integration of digital technologies within the insurance industry. - read more

Addressing the Evolving Cyber Threat Landscape in the Insurance Industry

14 Mar 2026: Paige Estritori

The upcoming Insurance News conference, scheduled for March 19 in Sydney, is set to tackle the rapidly evolving landscape of cyber risks and the strategies insurers can employ to mitigate them. This timely event will feature a panel of experts, including QBE's Global Head of Cyber Services, Dominic Keller; WTW's Director of Cyber and Technology for the Pacific, Michael Parrant; and MGA's Broking Operations Manager, Trent Woodward. - read more

Click for more Insurance News