The National Insurance Brokers Association (NIBA) welcomes the Tasmanian Governmentʼs focus on improving the availability and affordability of insurance

The National Insurance Brokers Association (NIBA) welcomes the Tasmanian Governmentʼs focus on improving the availability and affordability of insurance. This is a key priority for NIBA and the broking profession, and we support efforts to ensure that Tasmanian households and businesses can access the protection they need.

However, NIBA urgesthe Tasmanian Government to exercise caution in considering any intervention in insurance pricing or the underwriting process. Tasmania presents unique challenges from an insurance risk perspective. In such a concentrated market, a single severe weather event or catastrophic loss could materially undermine the viability of any risk pool.

Insurance Premiums are largely a reflection of underlying risk. The most effective way to improve affordability is to reduce that risk through practical mitigation measures and to remove cost burdens that unnecessarily inflate premiums, such as insurance-based taxes like the Fire Services Levy.

We look forward to engaging with the Tasmanian Government to understand the proposal for a state- owned insurer in more detail, including the assumptions, modelling and long-term implications underpinning the announcement.

NIBA remains committed to working with all levels of government to help reduce risk in communities and stand ready to support evidence-based solutions that deliver lasting benefits for consumers and ensure a competitive, resilient insurance market in Tasmania.