ACT Targets Rising Insurance Costs with Comprehensive Inquiry

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Capital Territory (ACT) is launching a thorough investigation into the escalating insurance costs that have been a cause for concern for businesses and community organizations.

This inquiry aims to shed light on the factors contributing to rising premiums and their broader impact.

Driven by the Legislative Assembly’s Standing Committee on Economics, Industry, and Recreation, the inquiry will explore several pivotal issues, including how insurance costs in the ACT measure against those in other regions, with a keen focus on workers' compensation and climate change impacts. "We are particularly interested in suggestions for improving the insurance sector to make it easier for small businesses and organisations to operate in the ACT," said committee chair Taimus Werner-Gibbings.

The investigation is set to delve into important topics like public liability claim trends, litigation behaviors influencing premium costs, and the challenges non-governmental and community projects face in accessing insurance coverage.

Part of the inquiry will also evaluate how insurance entities assess risks and consider public and private sector efforts in risk reduction. This is especially pertinent for community sports, recreation, and the creative arts when using government venues and facilities, as these requirements significantly affect their operations.

Additionally, the inquiry will examine models for offering public sector policies to community organizations, extending the scope to those that operate across state lines or on an international level.

According to the Canberra Business Chamber, there’s been a pressing need for action regarding insurance costs, which have been soaring to levels that many companies find unsustainable. "Increases in insurance premiums ultimately translate into price increases for customers and make it harder for businesses to operate sustainably," remarked CEO Greg Harford.

The chamber highlighted in its September-quarter Canberra Business Beat report that 44% of surveyed businesses experienced premium hikes exceeding 20% over two years, with these increases surpassing inflation rates.

Mr. Harford pointed out that although insurance costs are generally concerning, workers' compensation in the ACT stands out as particularly troublesome. "The chamber is hearing about huge price hikes for workers’ compensation insurance, and members report that it is substantially more expensive here in the ACT than in NSW or other jurisdictions," he added, noting the competitive disadvantage this creates for ACT-based businesses compared to those in other states.

Submissions for the inquiry are open until March 14, with the committee yet to announce when the findings will be reported.

The source of this information is from previous reports and statements, including insights from Greg Harford of the Canberra Business Chamber.

Published:Tuesday, 28th Jan 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Heightened Road Risks During Holiday Season Due to Increased Freight Traffic

25 Jan 2026: Paige Estritori

As Australia enters the summer holiday season, insurers and transport specialists are raising alarms about heightened road risks resulting from the convergence of increased freight activity and holiday travel. This period sees a significant uptick in both passenger vehicles and heavy trucks on the roads, amplifying the potential for accidents and safety incidents. - read more

Celebrating Excellence: 2025 National Trucking Industry Award Winners

25 Jan 2026: Paige Estritori

The Australian Trucking Association (ATA) has proudly announced the recipients of the 2025 National Trucking Industry Awards, recognizing outstanding contributions and achievements within the sector. These awards highlight the dedication and excellence of individuals and organizations that drive the industry forward. - read more

Premiums Decline in Australian Construction Insurance Market

25 Jan 2026: Paige Estritori

Australia's construction insurance market has entered a softer phase in 2025, with premiums decreasing across various lines due to heightened competition among insurers. According to Marsh's Construction Insurance Market Update 2025, premium reductions averaged between 5% and 15% in the first half of the year. - read more

Labour Shortages and Supply Chain Issues Elevate Insurance Claims Costs

25 Jan 2026: Paige Estritori

In 2025, Australia's insurance industry is grappling with rising claims costs, particularly within the construction sector, due to labour shortages and supply chain disruptions. Crawford & Company's latest Claims Inflation Update highlights that construction expenses are increasing at a rate faster than general consumer prices, with the Building Cost Index (BCI) rising nearly 5% annually. - read more