Consumer Advocacy Calls for $250 Million Annual Insurer Contribution Fund
Consumer Advocacy Calls for $250 Million Annual Insurer Contribution Fund
3
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.
A prominent consumer advocacy group, the Australian Consumers Insurance Lobby (ACIL), is advocating for insurers to contribute $250 million annually to support disaster risk mitigation, as well as the affordability and availability of insurance coverage.
This initiative seeks to address what the organization describes as an escalating crisis within the insurance industry.
Tyrone Shandiman, Chair of ACIL, suggests that distributing the $250 million expense across all members of the Insurance Council of Australia (ICA) would have minimal financial impact on individual insurers. He asserts that insurers have an obligation to redirect a portion of their substantial profits back to policyholders, rather than focusing solely on shareholder returns. According to Shandiman, the industry should actively participate in solutions rather than relying on government intervention alone.
The proposed funds would be allocated to support mitigation efforts in high-risk regions, offer premium relief for vulnerable consumers, create a research foundation to investigate long-term insurance affordability and availability strategies, and pilot programs that could justify significant government investment. ACIL emphasizes that insurers need to financially support these initiatives if they genuinely endorse mitigation and resilience measures.
Shandiman stresses that establishing such a fund would be a crucial step in rebuilding public trust in the insurance sector. He notes that insurers tend to propose solutions that do not require them to provide financial contributions, casting doubt on their commitment to true reform. This reluctance is juxtaposed with their record profit levels, while consumers in high-risk areas continue to face challenges in securing affordable insurance coverage.
The ACIL initiative suggests that the proposed funding could also be used to test and model strategies in support of the ICA's previously proposed $30 billion flood defense program. This program, outlined by ICA last month, calls for governmental investment over the next decade to alleviate growing concerns surrounding home insurance affordability.
The Insurance Council of Australia has acknowledged Mr. Shandiman's proposal but has not publicly committed to the initiative.
Published:Tuesday, 18th Mar 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The National Truck Accident Research Centre (NTARC) has released its 2025 Major Incident Investigation Report, shedding light on the primary human factors contributing to significant truck crashes across Australia. The findings emphasise the critical roles of inattention, distraction, and inappropriate speed in these incidents, underscoring the necessity for targeted safety interventions within the transport industry. - read more
QBE Australia Pacific has recently entered into a strategic partnership with Sure Insurance, aiming to bolster its broker-distributed householders cover. This collaboration signifies a concerted effort to provide more comprehensive and accessible home insurance solutions tailored to the diverse needs of Australian homeowners. - read more
Underwriting agency Blue Zebra has recently announced the establishment of new capacity arrangements for its home building and contents, landlord, and small to medium-sized enterprise (SME) package products. This strategic move is set to enhance the agency's ability to offer comprehensive and competitive insurance solutions tailored to the evolving needs of Australian homeowners and business operators. - read more
The Insurance Code Governance Committee has imposed a $30,000 penalty on AIG Australia for breaching its obligations related to claims handling. The insurer failed to inform customers about delays in processing their claims and neglected to advise them of their right to escalate complaints to the ombudsman. This regulatory action underscores the critical importance of transparency and communication in the insurance claims process. - read more
Insurance Australia Group (IAG), a leading insurer in Australia, has highlighted the significant impact of climate change on the cost of home insurance. The company reports that the increasing frequency and severity of weather events are contributing to rising premiums for homeowners. - read more
Suncorp, a prominent Australian insurer, has reported an 8% increase in full-year cash earnings, reaching A$1.49 billion for the year ending June 30, 2025. This performance surpasses analyst expectations and is attributed to improved insurance margins and favorable natural hazard costs. - read more
Insurance Australia Group (IAG) has reported a significant increase in annual cash earnings for the fiscal year ending June 30, 2025, reaching A$1.17 billion. This growth is primarily driven by an 8% rise in net earned premiums to A$9.98 billion and lower-than-expected natural peril costs. - read more
In April 2024, Markel, a US-based specialty insurer, unveiled a suite of professional indemnity (PI) insurance products specifically designed for the Australian market. These offerings cater to professionals in accounting, construction, design and construct, insurance, media, and miscellaneous sectors. - read more
In November 2024, the Australian Prudential Regulation Authority (APRA) directed Pacific International Insurance to increase its prudential capital requirement by $10 million. This action was taken in response to identified deficiencies in the insurer's oversight and control of its binder arrangements with intermediary partners. - read more
In October 2025, the Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, released a report highlighting the significant challenges faced by small and medium-sized enterprises (SMEs) due to soaring insurance premiums. The report emphasizes that many SMEs are compelled to either forgo insurance coverage or reduce their policies to remain financially viable in a challenging economic environment. - 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
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 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
Farming is inherently risky. With factors like weather, pests, and market fluctuations affecting crops, it's crucial to manage these risks effectively. - read more
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
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
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
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
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
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
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Disability Insurance: A type of insurance protection that pays a portion of a person's income lost due to a total or partial disablement arising from either an accident or a sickness.