Tasmanian Liberals Propose State-Backed Insurance Amid Criticism

2

Premier Rockliff attributes the proposed insurer to a pressing demand from Tasmanians fed up with exorbitant premiums, which are often influenced by mainland claims and corporate profits. The plan purports to offer cheaper and more accessible insurance options across various sectors, promising savings of $250 annually for households and a 20% reduction for small businesses. Initial insurance offerings would include home, contents, small business, community events, and farm coverages. The Motor Accidents Insurance Board (MAIB) will be expanded to facilitate this venture.

The Premier argues that TasInsure is necessary because, "the national market has failed Tasmanians," leading to unaffordable insurance in many parts of the state. With insurance premiums in Tasmania increasing over 35% in two years compared to a modest 5% hike in MAIB premiums, Rockliff insists on a "cheaper, fairer" solution to combat the financial burden on residents.

Nonetheless, the proposal is not without controversy. Independent candidate John Macgowan, among other critics, views TasInsure as an "unsustainable" plan that could drain taxpayer resources. Historical context suggests state insurance programs have led to significant unfunded liabilities.

The Insurance Council of Australia cautions that the initiative might place undue risks on Tasmanian taxpayers without addressing root causes of rising prices. They highlight catastrophic events, such as the 1967 Black Tuesday bushfires, as potential financial disasters for public insurance. Instead, they recommend abolishing stamp duty and fire service levies to improve affordability.

There are calls for collaborative efforts between the government and the industry to tackle the broader insurance challenges, focusing particularly on climate change impacts. Mathew Jones, GM public affairs, remarks on the risks associated with shifting liabilities to public balance sheets, especially with anticipated future climate events.

As Premier Rockliff promotes this initiative as the "most significant announcement" of the Liberal campaign, he emphasises the local frustration caused by mainland natural disasters impacting Tasmanian premiums. Despite 11 years of Liberal governance, issues like these remain critical in shaping the state's insurance strategy.

Published:Monday, 21st Jul 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Reviving Australia's Troubled Insurance Industry: Opportunities and Challenges 30 Jul 2025: Paige Estritori Australia's retail life insurance sector is facing significant challenges despite generating approximately $9.4 billion in annual premiums. Upon closer examination, it's evident that this industry is under strain. Growth is primarily driven by price increases rather than the addition of new clients, signalling concerns for long-term sustainability. New business growth hovers around 8-9% annually, not enough to adequately bolster the sector. - read more

NSW Government Warns of Financial Impact from Stall in Workers' Compensation Reform 29 Jul 2025: Paige Estritori The New South Wales government has issued a stark warning regarding potential financial consequences if proposed reforms to workplace mental injury laws are delayed further. As an upper house committee gathers to discuss these changes, Treasurer Daniel Mookhey highlights the urgency, stating that setbacks will result in increased premiums. - read more

AFCA Rejects Traveller's Insurer Claim for Alternative Flight Costs 25 Jul 2025: Paige Estritori An Australian travel insurance policyholder faced disappointment as the Australian Financial Complaints Authority (AFCA) denied their claim for reimbursement of costs incurred due to changing travel plans amid threats of a pilot strike. The traveller, who rearranged his flights from Sydney to Vancouver and subsequently to Toronto, had hoped his insurer, AIG Australia, would cover the $5,576 expenses for the rebooked flights and additional accommodation. - read more

Fee Models Emerge as Solution to Cyclone Insurance Affordability Concerns 25 Jul 2025: Paige Estritori The affordability of cyclone insurance in Australia’s high-risk zones remains a pressing issue, prompting some brokers to shift towards fee-based models. This change is highlighted in the latest annual review of the cyclone reinsurance pool from the Australian Competition and Consumer Commission (ACCC). - read more

Homeowner's Storm Damage Claim Denied; Faulty Construction Cited 24 Jul 2025: Paige Estritori A homeowner's attempt to secure a storm damage insurance payout has been thwarted after an investigation revealed that the damage was due to poor maintenance and faulty construction, rather than extreme weather conditions. The initial claim attributed the damage on the property's western wall and roof eaves to significant rainfall, citing a substantial 141mm in July, with a notable record of 43.6mm in a single day. - read more