The Assistant Treasurer leads Australia’s first international insurance delegation

The Assistant Treasurer Stephen Jones is leading Australia’s first international insurance delegation, with meetings scheduled in London (UK) and Munich (Germany). 

The delegation is focussed on better consumer outcomes. It includes representatives from the Insurance Council of Australia (ICA) and Australia’s largest insurers who will meet with global insurers, reinsurers, government, and leaders across the insurance industry. 

The Assistant Treasurer said the delegation has two main objectives: informing the global reinsurers of the government’s commitment to reduce the impact of natural hazards, while learning from the cutting-edge innovations in the global market. 

“We are building stronger, more resilient communities and we want to make that known in the global market.” Minister Jones said. 

“We want to highlight globally, the strong action we are taking on climate change, our increased investments in risk mitigation and the focus on better land planning so we don’t keep building the same homes in the same risky areas.” 

Major flood events and fires in recent years have raised the risk profile of insurance in disaster prone regions across Australia. 

As these hazard events get more frequent and more intense, the risk profile of insurance goes up. This has a direct impact on the cost of premiums. The Actuaries Institute says that over the past 12 months, home insurance has increased by 28% (median), and over 50% for high risk, affordability stressed households. 

Most Australian insurers purchase reinsurance – insurance for insurers – through global companies, predominantly based in the UK and throughout Europe. 

The Government is looking at how innovations in the global insurance industry can assist in achieving better insurance affordability for Australians. 

“London is the insurance capital of world. We want to look at what the world leaders are doing in risk management, risk price innovation, and solutions fit to improve access to affordable insurance for Australians back home,” Minister Jones said.  

The Minister will also encourage UK insurers offering public liability insurance to expand their business operations in Australia. This intends to promote access to public liability insurance for Australian businesses in the amusement, live music, and tourism sectors.