The Australian Consumers Insurance Lobby (ACIL) is calling on insurers to fund a $250 million annual Insurance Affordability & Availability Program, arguing that the industry should take financial responsibility for addressing the rising cost and limited availability of insurance in high-risk areas.
The call follows the Insurance Council of Australia’s (ICA) proposal for a $30 billion government-funded Flood Defence Fund, which ACIL says places the burden on taxpayers rather than the industry itself.
ACIL chairperson Tyrone Shandiman criticised the reliance on government funding, saying insurers continue to shift responsibility while reporting record profits.
“Insurers should return some of their record profits to policyholders instead of prioritising shareholder returns. Sharing $250 million across all ICA members, while a significant investment, is a mere blip on their balance sheets. It is time for insurers to show they are part of the solution rather than merely calling for government action,” Shandiman said.
The consumer advocacy group envisions the program supporting various initiatives, including funding mitigation projects in high-risk areas, providing premium relief for vulnerable consumers, and establishing research efforts to develop long-term solutions for insurance affordability and availability.
It also suggests that the program could be used to trial initiatives that would support major government investment, including the ICA’s proposed $30 billion plan.
“The creation of a $250 million per annum Insurance Affordability & Availability Program would be a meaningful step towards restoring trust and improving public perception,” Shandiman said.
