The National Insurance Brokers Association (NIBA) has underscored the need for accessible and affordable insurance as rising premiums place increasing pressure on Australian households and businesses.
The industry group’s comments come in response to Opposition Leader Peter Dutton (pictured), who suggested the Coalition might consider breaking up major insurers if competition concerns persist.
Dutton, speaking on Sky News, compared potential intervention in the insurance sector to the Coalition’s stance on supermarket chains, stating that consumer affordability remained a priority.
“There are obviously reinsurance issues, some of which are outside of our country’s control, but we need competition,” Dutton said.
Despite Dutton’s comments, National leader David Littleproud clarified that the proposal had not been formally endorsed by the Coalition.
Speaking to ABC RN, Littleproud suggested the government should ensure the insurance sector is operating fairly but did not commit to specific policy measures.
“It’s not a policy, what was announced. What Peter Dutton has said [is] we are prepared to use whatever policy lever we need to ensure that Australia’s cost-of-living, and consumers, are being treated fairly … I think it would be unfair to say that that was a policy announced by Peter Dutton,” he said, as reported by The Guardian.
Littleproud also criticised the Albanese government, stating that insurance premiums had risen 19% since Labor took office. When asked why the Coalition had not acted on insurance affordability during its time in government, he pointed to previous investments in disaster mitigation.
The remarks come as insurance costs continue to rise, particularly in disaster-prone regions. Recent bushfires in Victoria’s Grampians region and severe flooding in North Queensland have highlighted ongoing concerns over the affordability of coverage in high-risk areas.
NIBA CEO Richard Klipin emphasised the role of brokers in addressing affordability concerns.
“Insurance brokers are on the front line, ensuring Australians get the coverage they need at a fair price – now more than ever, their role is critical in navigating affordability challenges and assisting with risk mitigation,” he said.
NIBA pointed to government-imposed charges as a key driver of rising insurance costs, calling for reforms to state and federal insurance taxes and levies. The association argues that reducing these costs would help ease the financial burden on policyholders.
“One of the most effective ways to ease the cost burden on consumers is for state and federal insurance taxes and levies to be reassessed,” Klipin said.
Insurance Council of Australia (ICA) CEO Andrew Hall said insurers were aware of the financial strain on consumers but emphasised that premium reductions were linked to broader risk management initiatives.
“The only sustainable way to address insurance affordability is to reduce or remove risks,” he said, as reported by The Guardian. “This means investing in resilience-enhancing infrastructure, strengthening building stock and reforming land use planning, and requires significant investment from and collaboration with governments.”
Hall also argued that eliminating state-based insurance taxes could lead to significant savings, estimating that premiums could be reduced by up to 30% if these charges were abolished.
