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
Source: Paige Estritori

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

Share this news item:

Insurance News

Netstrata's Undisclosed Commissions and Conflicts of Interest Revealed
Netstrata's Undisclosed Commissions and Conflicts of Interest Revealed
06 Dec 2025: Paige Estritori
In February 2025, an independent review conducted by McGrathNicol uncovered significant issues within Netstrata, a prominent strata management company. The investigation revealed that Netstrata failed to disclose commissions and did not obtain multiple quotes for services, potentially breaching legal obligations. Additionally, the review identified undisclosed personal relationships between Netstrata employees and suppliers, raising serious concerns about conflicts of interest. - read more
NSW Fair Trading Revokes Strata Licences Due to Insurance Failures and Misconduct
NSW Fair Trading Revokes Strata Licences Due to Insurance Failures and Misconduct
06 Dec 2025: Paige Estritori
In May 2025, NSW Fair Trading took decisive action against Result Strata Management Pty Ltd and its General Manager, Michael Lee, by permanently revoking their licences to operate in the state's strata management sector. This move followed an investigation that uncovered multiple breaches of the Property and Stock Agents Act 2002, highlighting significant misconduct within the company. - read more
CHU's 2025 Strata Market Report: Stability Amidst Climate and Regulatory Challenges
CHU's 2025 Strata Market Report: Stability Amidst Climate and Regulatory Challenges
06 Dec 2025: Paige Estritori
In November 2025, CHU, Australia's largest strata insurance underwriting agency, released its 2025 State of the Strata Market report, providing a comprehensive analysis of the current trends and challenges within the strata industry. The report offers valuable insights into premium trends, climate-related risks, regulatory developments, and emerging sector challenges. - read more
Rising Insurance Costs Amidst Climate Change: What Homeowners Need to Know
Rising Insurance Costs Amidst Climate Change: What Homeowners Need to Know
06 Dec 2025: Paige Estritori
Australian homeowners are experiencing significant increases in home insurance premiums, largely due to the escalating risks associated with climate change. Recent analyses reveal a national average premium hike of 14%, translating to an additional $343 annually for policyholders. This trend underscores the growing financial burden on homeowners as extreme weather events become more frequent and severe. - read more
Competitive Market Dynamics Drive Down Construction Insurance Costs
Competitive Market Dynamics Drive Down Construction Insurance Costs
06 Dec 2025: Paige Estritori
The Australian construction insurance market has entered a notably softer phase in 2025, characterized by a significant reduction in premiums across various lines. This shift is primarily attributed to increased competition among insurers, offering clients more options and driving down costs. - read more
Click for more Insurance News


Health Insurance Articles

Unlocking Affordable Health Insurance: Tips to Reduce Your Premiums
Unlocking Affordable Health Insurance: Tips to Reduce Your Premiums
The current health insurance landscape in Australia can be quite confusing for many people. With numerous options available, it’s not always clear which to choose to balance your budget with your needs. Premiums are on the rise, and Australians are becoming increasingly concerned about the costs of maintaining adequate coverage. - read more
Smart Strategies to Lower Your Health Insurance Premiums
Smart Strategies to Lower Your Health Insurance Premiums
In today's rapidly changing health insurance landscape in Australia, keeping track of costs and coverage can be daunting. Many Australians find themselves grappling with high premiums that seem to increase year after year. - read more
What to Look for in Basic Health Insurance Cover
What to Look for in Basic Health Insurance Cover
Welcome to our discussion on basic health insurance cover, a topic that is crucial yet often overlooked in the hustle and bustle of everyday life. Navigating the world of health insurance can be daunting, but understanding your options is vital for peace of mind and financial stability. - read more
Health Fund Rebates 101: What Every Australian Needs to Know
Health Fund Rebates 101: What Every Australian Needs to Know
Exploring the realm of health insurance can be like navigating a labyrinth, replete with complex terms and varying policies. Among these, health fund rebates emerge as a crucial element, particularly for young Australians embarking on their journey of health coverage. Fund rebates can significantly lighten the financial burden, transforming the quest for health insurance from daunting to empowering. - 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


Your free Heatlth insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Whole Life Insurance:
A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.

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 do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. 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 always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.