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.
In a significant development for the Australian insurance landscape, Steadfast has announced the launch of Prevail, a new specialist agency designed to cater to high net worth individuals and the farming sector. This initiative brings together three well-established underwriting agencies-Mansions, Dawes, and Argis-under a unified brand, aiming to provide comprehensive and tailored insurance solutions. - read more
Harland Green, a newly established Lloyd's coverholder, has introduced an all-risk farm insurance package specifically designed for large commercial farming operations in Australia. This initiative aims to address the complex and evolving needs of the agricultural sector by offering comprehensive coverage that encompasses various aspects of farm operations. - read more
Allstate Underwriting Agencies has announced a strategic partnership with Mitsui Sumitomo Insurance (MSI) to enhance its capacity in providing insurance solutions for medium, small, and hobby farms across Australia. This collaboration is set to bolster Allstate's presence in the farm pack market, offering tailored products that meet the specific needs of these farming segments. - read more
Envest Group, a prominent entity in the insurance sector, has announced the launch of TLI Underwriting, a specialised heavy motor agency set to commence operations at the end of this month. This new venture is poised to cater specifically to the insurance needs of larger truck fleets, marking a significant expansion in Envest's service offerings. - read more
The Insurance Council of Australia (ICA) has unveiled a comprehensive report titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019. This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers. - read more
Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more
Finding affordable health insurance can be a daunting task, particularly in a landscape as diverse as Australia’s. With a myriad of options available, it's crucial to understand the financial support mechanisms in place that can ease the burden of healthcare costs. One such mechanism is the health fund rebate, a key feature of the Australian health insurance system designed to make healthcare more accessible. - read more
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
Private health insurance is an essential consideration for many Australians. It provides peace of mind, knowing that you and your family have access to the best possible healthcare when needed. - read more
Health insurance in Australia is a crucial aspect of ensuring you and your family receive the medical care needed without facing exorbitant costs. The healthcare system, consisting of both public and private sectors, offers various options to suit different needs and budgets. While the public sector (Medicare) provides essential services, private health insurance offers additional benefits such as faster access to services, choice of doctor, and coverage for services not included in Medicare. - 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.