Proposed Reforms Could Save Australians $4 Billion on Insurance

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 Greens have proposed a comprehensive policy initiative aimed at reducing the cost of insurance by $4 billion.

As natural disasters become more frequent and severe, insurance premiums have been escalating.

The Greens' strategy emphasizes a multi-faceted approach, including the abolishment of insurance stamp duties, an expansion of the Cyclone Reinsurance Pool to cover all natural disasters, and imposing financial contributions on fossil fuel companies to offset their impact on climate change.

The Cyclone Reinsurance Pool, created in 2022, currently works by having insurers contribute to a fund that helps protect high-risk properties from cyclone and flood damage, thereby reducing premiums. The Greens seek to make it broader, incorporating a wider range of climate-related events. In addition to tax reforms and regulatory oversight through the Australian Competition & Consumer Commission, the proposal also includes the development of a $10 million risk map to identify at-risk communities.

The policy estimations from the Parliamentary Budget Office suggest these measures could result in significant savings for Australian households, notably due to the removal of stamp duty fees. This policy will be unveiled by Deputy Greens Leader Mehreen Faruqi alongside candidate Mandy Nolan in a strategic move to gain traction in the Richmond seat, currently a target for the upcoming federal election.

Senator Faruqi criticized the lack of transparency by insurance companies, accusing them of exploiting the climate crisis for profit. She advocates for accountability, stressing that the companies responsible for climate issues should bear financial responsibility.

The Greens' announcement aligns with public sentiment against rising insurance costs, pushing for greater corporate transparency. Meanwhile, Opposition Leader Peter Dutton has threatened to act against insurers for excessive premium hikes, framing the issue as a failure of the free market. However, Nationals Leader David Littleproud prefers a cautious approach to regulatory reforms, emphasizing methodical evaluation before any drastic action.

The initiative has met criticism from independents like Zali Steggall, who dismissed Dutton's threats as "populist" and urged the Coalition to develop effective climate and energy policies rather than relying on insurance interventions.

As the debate unfolds, private health insurance is also under scrutiny, with Health Minister Mark Butler demanding justifiable proposals for any premium increases.

The insurance market is dominated by a few large companies controlling a significant market share, highlighting the potential impact of these proposed changes. As the political and public discourse continues, stakeholders await the unveiling of these proposed measures and their potential ramifications for insurers and consumers.

Published:Saturday, 1st Mar 2025
Source: Paige Estritori

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

Share this news item:

Insurance News

Rural Affinity and Munich Re Strengthen Agricultural Insurance in Australia

09 Jan 2026: Paige Estritori

In a significant development for Australia's agricultural sector, Rural Affinity has renewed its partnership with Munich Re Specialty - Global Markets under a new five-year agreement. This collaboration, which began in 2006, is set to enhance the availability and scope of agricultural insurance products across the country. - read more

WFI Insurance Highlights Significant Drop in Farm Liability Claims

09 Jan 2026: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

Elders Insurance Highlights Increased Summer Storm Risks for Farmers

09 Jan 2026: Paige Estritori

Elders Insurance is urging Australian farmers to prepare for another damaging summer, with claims data revealing the scale and financial impact of storm activity across the country's agricultural regions. Analysis of storm-related farm insurance property claims over the last two years indicates that summer accounts for the highest number of claims nationally. - read more

Insuregroup Achieves Significant Milestone in Truck Insurance Policies

09 Jan 2026: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently achieved a significant milestone by processing over 10,000 insurance policies since its inception. This accomplishment includes a 25% year-on-year increase in policy count, highlighting the escalating demand for comprehensive truck insurance solutions among Australian freight operators. - read more

Queensland Aligns with National Heavy Vehicle Regulator

09 Jan 2026: Paige Estritori

In a significant move towards regulatory consistency, Queensland has transferred its heavy vehicle compliance responsibilities to the National Heavy Vehicle Regulator (NHVR). This transition aligns Queensland with New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory, all of which have already integrated their heavy vehicle regulations under the NHVR's oversight. - read more