Keynote Address from the Hon Stephen Jones MP
The Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services addressed the 2024 NIBA Convention
The Hon. Stephen Jones MP, Assistant Treasurer and Minister for Financial Services provided a critical update on the evolving landscape of insurance and consumer expectations.
His talk focused on the government's efforts to tackle insurance affordability, consumer protections, and challenges in the wake of escalating natural disasters.
Minister Jones outlined several key policy initiatives aimed at reducing costs for consumers. First, he announced the government's intention to ban surcharges on debit card payments, a measure intended to ensure that consumers don't face extra charges for paying with debit cards. "We'll ensure that the burden isn't passed onto small businesses," Minister Jones added, underlining the need for balance between consumer protection and business viability.
He also spoke about the government's broader effort to crack down on unfair subscription practices, which include "subscription traps" that make it difficult for consumers to cancel services. This initiative is designed to bring greater transparency and fairness to the marketplace, benefiting everyday Australians by tackling hidden fees.
Turning to the insurance sector, Jones acknowledged the rising cost of premiums, which have surged by 16% in the past year, the largest increase in two decades. This is especially critical for those living in hazard-prone areas, as more Australians face increased exposure to natural disasters, with climate change acting as a "force multiplier." He noted that lower-income households are particularly vulnerable, often opting for no insurance or being underinsured due to cost pressures.
To address these challenges, Minister Jones highlighted the establishment of a task force focusing on insurance affordability, particularly for households and small businesses in high-risk zones. The task force will explore measures such as reinsurance arrangements and long-term solutions to mitigate risk and ease the financial burden on vulnerable communities.
The session also covered the recently tabled report from the Parliamentary Inquiry into insurers' response to the 2022 floods, calling for significant improvements in how insurers handle claims during major disaster events.
In the Q&A segment, Minister Jones fielded questions on topics such as broker commissions, stamp duty on insurance, and the essential role brokers play in ensuring better outcomes for consumers during crises.