NIBA has lodged a comprehensive submission responding to the Tasmanian Government’s TasInsure Discussion Paper and Preliminary Draft Bill, released for consultation in November 2025.
While NIBA recognises the genuine affordability pressures driving the proposal, our submission urges the Government to ensure TasInsure delivers strong consumer outcomes and avoids unintended consequences that could harm the very consumers it aims to protect.
Consumer access to professional advice is central to our submission. Neither the Discussion Paper nor the Draft Bill addresses how Tasmanian consumers will access the broking profession when purchasing TasInsure products. This is a critical omission. Evidence consistently shows that broker clients are twice as likely to be fully covered for their claims compared to direct buyers. If TasInsure products are not available through the broking profession, Tasmanian consumers—particularly small businesses, community organisations, and regional customers with complex risk profiles—will miss out on professional advice, claims advocacy, and support for informed decision-making.
Our submission also strongly advocates for completing Fire Services Levy reform as the most direct mechanism for premium relief. The levy adds approximately 28% to business insurance premiums, and abolishing it would deliver immediate, quantifiable savings without the complexity and risk of establishing a state-owned insurer.
On scheme design, NIBA recommends TasInsure operate as a last-resort model targeting genuine market failures rather than competing with private insurers on price. We also urge caution on including workers’ compensation, given the significant financial distress statutory classes have caused in other state-based schemes.
Consumer protection is paramount. NIBA recommends TasInsure be required to join AFCA to ensure Tasmanian consumers have access to free, independent external dispute resolution—the same protections afforded to customers of private insurers.
Finally, we call for the release of comprehensive financial modelling before legislation is finalised, including stress-testing under major-loss scenarios.
We remain committed to working with the Tasmanian Government to deliver insurance reforms that genuinely benefit Tasmanian consumers.