Farm Insurance :: News
SHARE

Share this news item!

Senate Pushes for Transparency in Insurance Premiums

Senate Pushes for Transparency in Insurance Premiums

Senate Pushes for Transparency in Insurance Premiums?w=400
The Senate has called on the Australian Competition and Consumer Commission (ACCC) to adopt a more active role in monitoring insurance premiums.
This comes as part of a broader recommendation advocating for insurers to enhance pricing transparency to assist consumers better understand their policies.

The final report of a Senate inquiry underscores the urgent need for government intervention aimed at mitigating risks as a strategy to boost the affordability of insurance premiums.

"Insurance premiums cannot continue to rise unchecked and out of the reach of a growing number of people," remarked Greens senator Mehreen Faruqi, chair of the pivotal committee overseeing the inquiry.

The Senate Select Committee scrutinizing the Impact of Climate Risk on Insurance Premiums and Availability engaged in hearings across key Australian cities, including Canberra and Sydney. Participating members also feature figures from various parties, including Labor’s Tony Sheldon and Liberal senator Dave Sharma.

The inquiry report, with its suite of eight recommendations, advocates for heightened transparency in premiums. A particular proposal involves marching orders for the ACCC to oversee premium pricing and issuing regular updates.

The committee's comments point to "a national affordability crisis," suggesting the imperative of an independent watchdog to oversee premium structures.

Insurers are under the spotlight, expected to furnish policyholders with a thorough breakdown of premium dynamics, especially amidst consumer-driven resilience endeavors and disaster preparedness efforts. As Senator Faruqi indicates, the current opaque nature of insurance is leaving many, particularly in disaster-prone locales, in the dark.

The Senate report further recommends instituting a national platform mapping all natural disaster data, urging for reforms in land use planning, and batting for the abolishment of insurance taxes through consultations with governmental councils.

In addition, the inquiry encourages the Australian government to amplify the Disaster Ready Fund to $400 million annually, ensuring increased investment in disaster-preparedness strategies, a suggestion echoed by Labor senators who note the government's existing financial commitments in this area.

Consideration is also given to extending the cyclone reinsurance pool to encompass a greater array of natural disasters. While this is resisted by some Liberal members, there exists a call for fiscal incentives encouraging insurers to take an active stake in mitigation activities.

Debate also surrounds the potential for a levy on mineral extraction corporations, intended to channel additional funds into preventive measures for disaster impacts and escalating insurance costs. However, there's contention among lawmakers regarding the lack of definitive modeling on the repercussions of such a levy.

Labor senators propose a review of governance structures in strata schemes at the state and territory level, advocating for refined transparency practices to safeguard residents' interests.

According to reports from the Insurance Council of Australia, they foresee a collaborative engagement on the inquiry's findings. Notably, as pointed out by CEO Andrew Hall, this situation highlights synergies between climate risk policies and insurance cost strategies as were similarly explored following the 2022 flood events.

 

Published:Thursday, 28th Nov 2024
Source: Paige Estritori

Share this news item:

Insurance News

ICA Advocates for Strata Law Reform in the ACT to Enhance Building Management ICA Advocates for Strata Law Reform in the ACT to Enhance Building Management
08 Jul 2025: Paige Estritori

The Insurance Council of Australia (ICA) is urging the Australian Capital Territory (ACT) to adopt strata transparency regulations, aiming to enhance oversight of building repairs and maintenance by owners’ committees. This call was made during a parliamentary inquiry, where the ICA pushed for measures akin to recent legislative changes in New South Wales. - read more
Tasmanian Government Insurance Proposal Faces Industry Backlash Tasmanian Government Insurance Proposal Faces Industry Backlash
07 Jul 2025: Paige Estritori

The Tasmanian government's recent proposal to establish a state-run insurance entity has drawn significant criticism from key players in the insurance industry. The plan, spearheaded by Premier Jeremy Rockliff, aims to expand the Motor Accidents Insurance Board into a broader service named TasInsure, offering products including home and contents insurance, small business coverage, and more. The RACT, a major player in Tasmania's insurance sector, expressed considerable concern, labelling the initiative as a simplistic answer to complex problems. - read more
Asbestos Scare Leaves Hospitality Business Uninsured Asbestos Scare Leaves Hospitality Business Uninsured
04 Jul 2025: Paige Estritori

The discovery of asbestos-contaminated mulch in a Sydney park led to the cancellation of a festival, resulting in significant financial losses for a hospitality business. Despite these setbacks, the company's claim for coverage under its business interruption (BI) policy was rejected. - read more
Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims
03 Jul 2025: Paige Estritori

In a groundbreaking decision by the NSW Personal Injury Commission, an insurer has been directed to cover the costs of dog walking services for a car crash victim. The commission ruled that these services classify as domestic assistance under the state’s Motor Accident Injuries Act. This case could pave the way for broader interpretations of 'attendant care services' for claimants. - read more
Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers
03 Jul 2025: Paige Estritori

Extreme weather events in Australia have resulted in significant financial impacts for insurers, tallying $1.83 billion in losses during the first half of the year. This comes as insurance companies gear up for further claims linked to ongoing severe weather in New South Wales. - read more
ClearView Names New Underwriting Head Amidst Strategic Changes ClearView Names New Underwriting Head Amidst Strategic Changes
30 Jun 2025: Paige Estritori

ASX-listed life insurer ClearView has announced the appointment of Peter Tilocca as Head of Underwriting, coinciding with key updates to its underwriting standards and definitions. Tilocca's extensive two-decade career in Australian underwriting includes leadership roles at Zurich, Noble Oak, One Path Life, and RGA Australia. His new role with ClearView commenced on 30 June. - read more



Farm Insurance Articles

Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs
For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
How to Save Money on Your Farming Insurance Premiums How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more
How to Choose the Right Farm Insurance Policy for Your Needs How to Choose the Right Farm Insurance Policy for Your Needs
Farm insurance is a type of coverage designed specifically for the unique risks and operations involved in farming. It encompasses protection for farm dwellings, equipment, livestock, and crops, offering a tailored approach that reflects the diverse needs of farm owners. This coverage can help safeguard your livelihood against unforeseen events that could disrupt farm operations or result in significant financial losses. - read more
Understanding Farm Equipment Insurance: What Rural Australians Need to Know Understanding Farm Equipment Insurance: What Rural Australians Need to Know
Farm equipment insurance is crucial for rural Australians who rely on their machinery for agricultural productivity. This insurance provides a safety net, helping to mitigate the financial risks associated with equipment loss or damage. - read more
The importance of income protection insurance for hobby farmers The importance of income protection insurance for hobby farmers
As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more
Understanding Farm Equipment Insurance: What Rural Australians Need to Know Understanding Farm Equipment Insurance: What Rural Australians Need to Know
Farm equipment insurance is crucial for rural Australians who rely on their machinery for agricultural productivity. This insurance provides a safety net, helping to mitigate the financial risks associated with equipment loss or damage. - read more
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more
Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs
For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
5 Key Types of Farm Insurance Policies for Australian Farmers 5 Key Types of Farm Insurance Policies for Australian Farmers
As an Australian farmer, understanding the necessity of farm insurance is crucial to protecting your livelihood. The agricultural sector is inherently fraught with risks, ranging from natural disasters to the unpredictable market. Farm insurance serves as a vital safety net, safeguarding your farm's infrastructure, crops, livestock, and more. - read more
Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
How to Save Money on Your Farming Insurance Premiums How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more

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

Knowledgebase
Flood Insurance:
A specific type of property insurance that covers losses and damage caused by flooding.