Coalition Pledges to Cut Insurance Capital and Compliance Costs
Coalition Pledges to Cut Insurance Capital and Compliance Costs
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 Coalition has proposed significant changes to the insurance sector's capital requirements and regulatory compliance, a move supported by the Insurance Council of Australia (ICA).
This pledge comes in the lead-up to the federal election, with shadow treasurer Angus Taylor detailing the plans that aim to alleviate the industry's financial pressures.
The ICA has expressed approval, acknowledging the importance of regulation in protecting consumers and building trust in the industry. However, it highlighted the strain that rapid regulatory reforms over the last ten years have placed on resources, which in turn increases costs for customers. The proposed adjustments to capital liquidity rules could enhance productivity and cut consumer expenses, which insurers have long advocated for.
According to Angus Taylor, the financial services sector faces compliance costs exceeding $1 billion, with Australians remaining underinsured and underadvised. Taylor emphasised the need for a balance in APRA's (Australian Prudential Regulation Authority) capital rules to ensure stability while improving access to finance for households and businesses. The goal is to reflect risk more accurately in insurer portfolios, reducing consumer costs and unlocking capital for investment, all while maintaining financial stability.
Expert insights from Scott Duncan, a Taylor Fry actuary, highlight challenges such as natural disaster impacts and building material cost inflation on home insurance. Duncan suggests that while capital requirements are essential, they become secondary to these factors. Current prudential standards ensure insurers hold sufficient capital against rare catastrophic events, allowing for potential higher-risk investments.
As regulatory frameworks assess the alignment of assets and liabilities, the asset risk charge mechanism remains vital. The experience of recent catastrophic events underscores the rapid changes in liabilities and the significant impact they can have, reinforcing the need for adaptable regulatory approaches.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Australian Government has enacted significant reforms to the National Disability Insurance Scheme (NDIS) to enhance its integrity and sustainability. These measures aim to protect the scheme from exploitation and ensure it continues to serve Australians with permanent and significant disabilities effectively. - read more
Leading Australian life insurer TAL has announced significant enhancements to its flagship retail product, Accelerated Protection. These updates include the introduction of the Total and Permanent Disability (TPD) Support Option and strengthened income protection features tailored for self-employed individuals. - read more
Recent natural disasters have significantly impacted the Australian insurance industry, leading to a substantial increase in claims costs. According to KPMG's annual review, the general insurance sector reported a profit after tax of $5.2 billion for the calendar year 2025, a decrease from $6.2 billion in 2024. - read more
In a significant move within the Australian insurance industry, EML Group has acquired a 70% stake in Guild Insurance, forming a strategic partnership aimed at fostering growth and accelerating technological advancements. This collaboration combines Guild's extensive experience in general insurance and workers' compensation with EML's expertise in injury claims management and technology-driven solutions. - read more
The Australian commercial insurance market is experiencing a continued decline in prices, presenting opportunities for businesses to enhance their coverage. According to reports from global brokers Marsh and Aon, commercial insurance rates in the Pacific region, led by Australia, fell by 12% in the last quarter of 2025, marking the steepest drop since reductions began in early 2024. - read more
The Australian Competition and Consumer Commission (ACCC) has recently opposed the proposed acquisition of the Royal Automobile Club of Western Australia's (RAC WA) insurance arm by Insurance Australia Group (IAG). This decision follows a comprehensive six-month investigation into the potential impacts of the $1.35 billion deal. - read more
The Australian Securities and Investments Commission (ASIC) has recently highlighted the need for home insurers to enhance their oversight of independent experts and improve communication with consumers, particularly concerning cash settlements. This call to action stems from ASIC's ongoing efforts to ensure that insurers provide fair and transparent services to policyholders. - read more
The interim report of the ongoing review of Australia's Life Insurance Code of Practice (Life Code) has been released, receiving positive feedback from the country's life insurers. Led by financial sector expert Peter Kell, the review involved extensive engagement with the community, consumer advocates, and regulators to ensure the Life Code remains robust, relevant, and trusted. - read more
The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly released the Life Insurance Claims and Disputes Statistics for the year ending December 31, 2025. This comprehensive report provides valuable insights into the performance of the life insurance industry, highlighting key trends in claims and disputes that are crucial for both consumers and industry stakeholders. - read more
Swiss Re Life & Health Australia has announced a suspension of new life insurance business activities in the country, effective October 2025. This decision stems from concerns over the sustainability of Total Permanent Disability (TPD) insurance products, which have seen a significant rise in claims, particularly related to mental health. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Farming is much more than an occupation; it's a way of life and a heritage that often spans generations. In today's ever-evolving agricultural landscape, embracing modern practices while preserving your farm's future has never been more crucial. Estate planning emerges as a pivotal strategy for safeguarding your agricultural legacy, ensuring that your hard-earned investments and the land you hold dear are passed on according to your wishes. - read more
Australian farmers face an array of natural disasters that can threaten livelihoods and disrupt the delicate balance of agricultural ecosystems. From devastating bushfires and droughts to powerful storms and floods, these catastrophic events pose serious risks to the farming community. Understanding and preparing for these forces is not just about survival; it's about building a sustainable future for farms across the continent. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Welcome to the first steps in future-proofing your farming legacy. When we think about the hustle and bustle of daily farm life, it's easy to overlook the critical importance of estate planning. For the Australian farmer, estate planning is not just a matter of securing your assets; it's about ensuring the survival and progression of your hard-earned labour to the next generation. - read more
Australian farmers face a unique set of challenges due to the vast and varied climate conditions that sweep across the continent. From the scorching heat and prolonged droughts of the Outback to the tropical storms and torrential rains of the northern regions, weather-related risks are an integral part of agricultural life in Australia. - read more
Risk management is the practice of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. In farming, risk management involves various strategies to protect the financial health and operational stability of the farm. - read more
In the dynamic world of Australian agriculture, farm equipment plays a crucial role in the day-to-day operations of farms. From tractors to harvesters, having the right machinery means managing your farm more efficiently. However, the high value of this equipment makes it essential to protect it adequately through insurance. - read more
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Reinsurance: Insurance that an insurance company purchases from another insurance company to mitigate risk.