Farm Insurance Australia :: News
SHARE

Share this news item!

Insurance Brokers Challenge Opposition’s Divestment Strategy

Insurance Brokers Challenge Opposition’s Divestment Strategy

Insurance Brokers Challenge Opposition’s Divestment Strategy?w=400

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.

Opposition Leader Peter Dutton’s proposal to dismantle major insurance companies to boost competitiveness and reduce premiums has sparked significant pushback from industry brokers.
The suggestion, criticized as ineffective, faces opposition from those who argue that the root causes of high premiums lie elsewhere.

As noted by insurtech pioneer Scott Norton, whose alternatives have gained traction, the real issue lies in inadequate disaster preparedness. According to broker Petara Tanuvasa, premium increases are driven by insufficient measures like flood defences and firebreaks. These gaps lead insurers to elevate premiums to offset rising claims. Taxes further burden consumers, with levies such as GST, stamp duties, and fire service contributions inflating costs more.

Stacy Finnegan, COO of RepX, backed Norton’s viewpoint and stressed that local governments play a critical role in reducing home insurance claims. Enforcing building standards, avoiding development in risk-prone areas, and incorporating flood and fire-resistant requirements are crucial steps. "We stand united against severe weather patterns that heighten market volatility, instead of targeting the industry unfairly," she commented.

Additionally, some industry voices, like Tasmanian broker Greg Lewer, suggest that the real financial burdens come from other sectors. Lewer highlights the disparity between insurance and bank profits, noting that while 85 insurers collectively earned $5.9 billion last year, the Commonwealth Bank of Australia alone garnered $5.1 billion in half that time.

Given the challenges, industry stakeholders believe addressing fundamental issues rather than resorting to divestment is vital for achieving sustainable premium reductions and fostering healthy market competition.

As the debate unfolds, it remains to be seen whether policymakers will shift focus towards holistic solutions that encompass broader economic and environmental strategies, addressing taxes, disaster mitigation, and proactive local governance.

Published:Thursday, 6th Mar 2025
Author: Paige Estritori
Sources

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

Share this news item:

Insurance News

Budget Direct Achieves Top Honors as Australia's Insurer of the Year
Budget Direct Achieves Top Honors as Australia's Insurer of the Year
21 Mar 2026: Paige Estritori
Budget Direct has been honored with the inaugural 'Insurer of the Year' title at the 2026 Finder Provider of the Year Awards, solidifying its position as a leading choice for Australians seeking exceptional insurance coverage. This recognition is accompanied by four additional category wins, making Budget Direct the most awarded provider in this year's ceremony. - read more
Australian Insurers Advocate for Legislation Against Unfair Claims Practices
Australian Insurers Advocate for Legislation Against Unfair Claims Practices
21 Mar 2026: Paige Estritori
The Insurance Council of Australia (ICA) has expressed strong support for the proposed Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, which aims to establish a general prohibition on unfair trading practices within Australian Consumer Law. This legislation is designed to empower regulators to take decisive action against predatory operators, particularly within the claims management sector. - read more
Significant Rise in Private Health Insurance Premiums Set for April 2026
Significant Rise in Private Health Insurance Premiums Set for April 2026
21 Mar 2026: Paige Estritori
Australians are bracing for a substantial increase in private health insurance premiums, with an average rise of 4.41% scheduled to take effect from April 1, 2026. This marks the most significant hike since 2017 and is expected to place additional financial pressure on households already contending with the rising cost of living. - read more
Insurance Council Declares Significant Events for Northern Territory and Queensland Floods
Insurance Council Declares Significant Events for Northern Territory and Queensland Floods
21 Mar 2026: Paige Estritori
The Insurance Council of Australia (ICA) has declared Significant Events in response to the severe flooding that has recently impacted communities in the Northern Territory and Queensland. This declaration aims to expedite the insurance industry's response and provide necessary support to affected residents. - read more
Insurance Australia Group Enhances 2026 Outlook Following RACQ Insurance Acquisition
Insurance Australia Group Enhances 2026 Outlook Following RACQ Insurance Acquisition
21 Mar 2026: Paige Estritori
Insurance Australia Group (IAG) has revised its fiscal 2026 outlook upwards, following the successful acquisition of the Royal Automobile Club of Queensland's (RACQ) insurance arm. This strategic move is set to bolster IAG's presence in the Queensland market and drive substantial growth in the coming year. - read more
Industry Bodies Call for Reforms in Professional Indemnity Insurance to Address Systemic Failures
Industry Bodies Call for Reforms in Professional Indemnity Insurance to Address Systemic Failures
21 Mar 2026: Paige Estritori
In a concerted effort to enhance the effectiveness of professional indemnity (PI) insurance within Australia's financial services sector, leading industry bodies have submitted a joint proposal to the Treasury. The submission, dated 13 February 2026, underscores the necessity for increased transparency and proactive measures to prevent systemic failures that have previously led to significant consumer losses. - read more
CHU Enhances Strata Insurance Coverage for Larger Properties
CHU Enhances Strata Insurance Coverage for Larger Properties
21 Mar 2026: Paige Estritori
CHU, Australia's leading strata insurance underwriting agency, has significantly increased its capacity to insure larger residential and commercial strata developments. The company has raised its maximum single risk capacity from $300 million to $690 million, more than doubling its previous limit. This expansion applies to CHU's strata insurance policies across both residential and commercial properties, encompassing all property-related sections under a single policy, including insured property, catastrophe cover, and lot owners' fixtures and improvements. - read more
ACCC Advocates for Elimination of Strata Insurance Commissions
ACCC Advocates for Elimination of Strata Insurance Commissions
21 Mar 2026: Paige Estritori
The Australian Competition and Consumer Commission (ACCC) has called for a ban on strata insurance commissions, highlighting concerns that undisclosed financial arrangements are misleading consumers and driving up insurance costs. ACCC Chair Gina Cass-Gottlieb emphasized that hidden payments and commissions create financial incentives that may not align with the best interests of property owners. - read more
Allianz Partners Highlights Risks of Travelling Uninsured
Allianz Partners Highlights Risks of Travelling Uninsured
20 Mar 2026: Paige Estritori
Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more
Rising Medical Costs Lead to Surge in High-Value Travel Insurance Claims
Rising Medical Costs Lead to Surge in High-Value Travel Insurance Claims
20 Mar 2026: Paige Estritori
Southern Cross Travel Insurance (SCTI) has reported a notable rise in high-cost travel insurance claims, underscoring the escalating medical expenses faced by Australian travellers abroad. The insurer's most expensive claim last year amounted to $672,630, a 259% increase compared to the previous year's highest claim. - read more


Farm Insurance Articles

The Modern Farmer's Checklist for Assessing Farm Equipment Insurance Needs
The Modern Farmer's Checklist for Assessing Farm Equipment Insurance Needs
As the backbone of Australian agriculture, farm equipment plays an essential role in day-to-day operations across our expansive and diverse landscapes. From the vast wheat belts to the tropical fruit farms, machinery ensures efficiency and productivity in the face of constant challenges. But with reliance on such equipment comes significant risk—the financial burden of damage or loss can be devastating to a farmer's livelihood. - read more
A Farmer's Guide to Essential Farm Insurance Terminology
A Farmer's Guide to Essential Farm Insurance Terminology
Farming is a vital industry in Australia, requiring significant investment in equipment, crops, livestock, and labour. As with any major investment, protecting it is crucial. That's where farm insurance comes in. - read more
Customized Insurance Solutions: The Advantage of Specialized Farm Brokers
Customized Insurance Solutions: The Advantage of Specialized Farm Brokers
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Farm Liability Insurance Costs vs. Benefits: Is It Worth It?
Farm Liability Insurance Costs vs. Benefits: Is It Worth It?
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
Agroforestry Insurance Guide: Protecting Your Investment in Australia's Sustainable Future
Agroforestry Insurance Guide: Protecting Your Investment in Australia's Sustainable Future
Agroforestry is a transformative approach to land management that integrates trees into agricultural landscapes. In Australia, where farmers contend with variable climates and environmental challenges, agroforestry offers a resilient pathway to productivity and sustainability. - read more
The Digital Farmer's Guide to Insuring Your Agribusiness in the Tech Age
The Digital Farmer's Guide to Insuring Your Agribusiness in the Tech Age
Welcome to the defining era where technology and agriculture entwine, bringing forth the digital farmer's era. With the evolution of agribusiness in the tech age, comes an array of new tools, opportunities, and risks. As a custodian of the earth and steward of the latest innovations, safeguarding your digital farm is just as crucial as nurturing your crops and livestock. - read more
Investing in Your Farm's Legacy: Estate Planning and Farm Insurance Combined
Investing in Your Farm's Legacy: Estate Planning and Farm Insurance Combined
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
How to Safeguard Your Farm: A Guide for Australian Farmers
How to Safeguard Your Farm: A Guide for Australian Farmers
Farming is inherently risky. With factors like weather, pests, and market fluctuations affecting crops, it's crucial to manage these risks effectively. - read more
Insurance for Hobby Farms: Finding the Right Coverage
Insurance for Hobby Farms: Finding the Right Coverage
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
From Droughts to Floods: Understanding Weather-Related Coverage in Farm Insurance
From Droughts to Floods: Understanding Weather-Related Coverage in Farm Insurance
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


Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.