The National Insurance Brokers Association (NIBA) has engaged with Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth in Canberra, reinforcing its focus on improving insurance affordability and accessibility for Australian consumers.
The discussions occurred against the backdrop of recent natural disasters, including bushfires in Victoria’s Grampians region and severe flooding in North and Far North Queensland. These events have intensified concerns over rising insurance costs, particularly in disaster-prone areas.
NIBA said that insurance brokers play an essential role in helping individuals and businesses recover from such events. The association noted that brokers have been assisting clients in affected regions by guiding them through the claims process and ensuring they have suitable coverage.
“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,” said NIBA CEO Richard Klipin (pictured left).
NIBA encouraged policyholders to work with brokers to review their coverage and ensure they are receiving the most cost-effective policies available.
The association said that while there is competition in the insurance market, navigating policy options can be complex, and brokers serve as trusted advisors in this process.
A key concern raised by NIBA is the impact of government-imposed costs on insurance premiums. The association is advocating for changes to state and federal insurance taxes and levies, arguing that these charges contribute to higher premiums and reduce affordability for consumers.
“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.
NIBA maintains that reducing these costs would help put downward pressure on premiums and improve access to coverage, particularly for businesses and homeowners in high-risk areas.
The discussion on insurance affordability comes as the federal opposition considers potential regulatory changes in the sector.
Opposition Leader Peter Dutton has indicated that a future Coalition government may examine competition within the insurance market, including the possibility of breaking up major insurers.
While NIBA has not commented on that specific proposal, the association continues to advocate for reforms that address affordability challenges. It has called for collaboration between industry stakeholders, policymakers, and consumers to manage the growing financial impact of extreme weather events on insurance costs.
