TasFarmers calls for clarity around revamped TasInsure policy

The state’s peak farming body wants clearer timelines from the Tasmanian government on promised insurance savings.

During last year’s state election, the Liberal Party announced it would establish a government-run insurance company called TasInsure.

But now it has ditched its original plans, opting instead to establish a not-for-profit statutory authority to oversee the insurance industry.

Premier Jeremy Rockliff said that the decision was made following advice from insurance expert John Towbridge, who the government tapped to develop a framework for TasInsure.

“TasInsure will step in where the market fails and will focus on long-term affordability by addressing risk, prevention, resilience and increasing competition,” Mr Rockliff said.

“Its primary focus is to lower the cost of insurance for Tasmanian households, businesses, tourism operators, community groups and other consumers.

“Our Government is delivering a nation-leading solution to insurance, and Tasmanians will reap the benefits.”

TasFarmers CEO Nathan Calman said the original plans for TasInsure were well supported by the state’s primary producers.

He said the government must live up to its commitment to reduce insurance costs through the new model , including the election pledge to cut insurance premiums for small businesses by 20 per cent.

“Farmers backed the proposal because insurance affordability had become a major pressure on farm businesses,” Mr Calman said.

“Primary producers are small business owners first and foremost. They supported this policy because they were promised meaningful reductions in insurance costs.”

“We now need to see those commitments carried through and delivered in practice.”

Mr Calman said the Liberal Government’s latest announcement had provided little detail around workers' compensation and when savings would actually flow to policyholders, creating uncertainty for businesses already operating in a high-cost environment.

“There has been a large spike in workers’ compensation, but it did not feature prominently in the announcement, despite forming part of the original election commitment.

“There is still no clear understanding of the timeline for when consumers can expect these savings.

“In the current inflationary environment, lower insurance costs would give farmers and regional businesses greater confidence and certainty to employ more people, invest back into their operations and plan for the future.”