Senate inquiry into Australia’s general insurance industry

The Senate Economics Committee has initiated an inquiry into Australia’s general insurance industry and NIBA has been invited to make a submission to this inquiry.

On 22 November 2016, the Senate referred the following matters to the Senate Economics References Committee for inquiry and report by 22 June 2017:

  • the increase in the cost of home, strata and car insurance cover over the past decade in comparison to wage growth over the same period;
  • competition in Australia’s $28 billion home, strata and car insurance industries;
  • transparency in Australia’s home, strata and car insurance industries;
  • the effect in other jurisdictions of independent home, strata and car insurance comparison services on insurance cover costs;
  • the costs and benefits associated with the establishment of an independent home, strata and car insurance comparison service in Australia;
  • legislative and other changes necessary to facilitate an independent home, strata and car insurance comparison service in Australia; and
  • any related matters.

“NIBA continue to be the voice of insurance brokers, explain what insurance brokers do, promote the role and value of brokers and we will continue to argue for relevant and appropriate legislation and regulation that aids and assists the insurance process,” says Dallas Booth, NIBA CEO .

Brokers handle almost 90 per cent of the commercial insurance transacted in Australia, and play a major role in insurance distribution, handling an estimated $16 billion in premiums annually and placing around half of Australia’s total insurance business. Insurance brokers also place substantial insurance business into overseas markets for large and special risks.

“We will promote the need for an effective and competitive insurance market, the proper understanding and management of risk, and the critical need for advice on risk and insurance matters,” Booth adds.

Members who have comments on the proposals should provide them to NIBA CEO Dallas Booth at dbooth@niba.com.au. We would be grateful if comments could be provided by close of business on 10 January 2017.