Initially, during the 2025 state election campaign, Premier Jeremy Rockliff pledged to launch a state-owned insurer, TasInsure, to offer affordable insurance products to Tasmanians. The plan was to provide home, contents, and small business insurance, with promises of saving families $250 annually and reducing small business insurance costs by 20%. However, the government has now decided to pivot from this model.
Premier Rockliff stated that the new approach would better fulfill their commitments by focusing on long-term affordability through risk management, prevention, resilience, and increased competition. The revised TasInsure will collaborate with insurers, brokers, reinsurers, and other industry stakeholders to address gaps in insurance availability and affordability.
The decision to alter the original plan was influenced by concerns over potential risks to the state budget, the capacity to respond to disasters, and the impact on the private insurance market. Industry experts, including John Trowbridge, who was commissioned to develop a framework for TasInsure, advised against establishing a state-owned insurer due to high risks and costs with low chances of delivering the intended benefits.
Instead, recommendations include creating a TasInsure-operated reinsurance pool to protect property owners from major weather events and establishing designated risk pools for sectors like tourism, outdoor recreation, live entertainment, hospitality, and community associations. Additionally, the plan suggests implementing insurance advisory and comparison services to promote competition and transparency.
While the opposition criticizes the government for breaking its election promise, industry representatives have welcomed the revised approach. RACT Chief Executive Mark Mugnaioni described the implementation plan as a positive step toward improving insurance affordability in Tasmania.
For small to medium business owners, entrepreneurs, and sole traders in Tasmania, this development signifies a shift toward a regulatory framework aimed at enhancing the overall insurance landscape. By focusing on oversight and support rather than direct competition, the government seeks to create a more sustainable and competitive insurance market that addresses the specific needs of local businesses.
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