NIBA Welcomes Tasmaniaʼs Insurance Affordability Focus, Supports National Consistency on Broker Regulation

The National Insurance Brokers Association (NIBA) welcomes the Tasmanian Governmentʼs ongoing efforts to improve insurance affordability and availability for Tasmanian households, businesses, and community groups. It also appreciates the constructive engagement with insurers, brokers, and reinsurers in shaping its response. Insurance affordability remains a top priority for NIBA and the broking profession, and NIBA supports practical, evidence-based initiatives to ensure Tasmanians can access the protection they need.

NIBA welcomes the Governmentʼs decision to establish TasInsure as a Tasmanian Government-owned, not-for-profit statutory authority that will work with insurers, brokers, and reinsurers to address gaps in affordability and availability. This includes a dedicated risks pool for hard-to-place cover and engagement with the reinsurance market. NIBA is pleased the Government has listened to the insurance sector in developing this approach, and that the model it has selected aims to work alongside the existing market and broking profession serving Tasmanians, rather than displace them.

Sustainable affordability ultimately relies on addressing the root causes of cost. Insurance premiums mainly reflect risk, and the most effective way to lower premiums is to reduce that risk through ongoing investment in mitigation. It also involves removing additional costs layered on top of premiums — including insurance-based taxes like the Fire Services Levy. NIBA urges the Tasmanian Government and TasInsure to prioritise risk reduction and the elimination of these imposts, and welcomes the shared focus across the insurance sector on these fundamental issues.

NIBA notes that the broader recommendations accompanying the decision include a proposal to alter how insurance brokers disclose their remuneration.

“The broking profession supports clear disclosure of how brokers are remunerated — it is exactly what the current review of the Insurance Brokers Code of Practice is addressing for the whole profession,” said NIBA CEO Richard Klipin.

NIBA looks forward to engaging constructively with the Tasmanian Government and TasInsure as the model is developed, and remains committed to evidence-based solutions that deliver lasting affordability outcomes for consumers and a competitive, resilient insurance market.