Tasmanian Government Overhauls TasInsure Strategy

Initially, during the 2025 state election, Premier Jeremy Rockliff pledged to launch a state-owned insurer, TasInsure, to offer affordable home, contents, and small business insurance to Tasmanians. The proposal was positioned as a solution to perceived market failures, with promises of substantial savings for families and businesses.

However, the government has now decided to reconfigure TasInsure into a regulatory body that will collaborate with existing insurers, brokers, and reinsurers. The primary objective is to identify and address gaps in the insurance market, particularly focusing on hard-to-insure activities and risks. This approach is intended to enhance competition and promote long-term affordability by improving risk management, prevention, and resilience strategies.

Premier Rockliff emphasized that this new direction would better fulfill the government's commitments by stepping in where the market fails and focusing on sustainable affordability measures. The decision follows a comprehensive review led by industry expert John Trowbridge, who advised against establishing a state-owned insurer due to potential high risks and costs. Instead, he recommended initiatives such as creating a TasInsure-operated reinsurance pool to protect property owners from major weather events specific to Tasmania.

The insurance industry has welcomed this revised approach. RACT Chief Executive Mark Mugnaioni described the implementation plan as a positive step toward improving insurance affordability. The shift from a state-owned insurer to a regulatory authority is seen as a more effective means of addressing the unique challenges faced by the Tasmanian insurance market.

For consultants operating in Tasmania, this development underscores the importance of staying informed about regulatory changes that may impact insurance options and costs. Engaging with industry bodies and participating in discussions about market interventions can provide valuable insights and opportunities to influence policies that affect professional indemnity and liability insurance.