Consumer Advocacy Calls for $250 Million Annual Insurer Contribution Fund

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A prominent consumer advocacy group, the Australian Consumers Insurance Lobby (ACIL), is advocating for insurers to contribute $250 million annually to support disaster risk mitigation, as well as the affordability and availability of insurance coverage.

This initiative seeks to address what the organization describes as an escalating crisis within the insurance industry.

Tyrone Shandiman, Chair of ACIL, suggests that distributing the $250 million expense across all members of the Insurance Council of Australia (ICA) would have minimal financial impact on individual insurers. He asserts that insurers have an obligation to redirect a portion of their substantial profits back to policyholders, rather than focusing solely on shareholder returns. According to Shandiman, the industry should actively participate in solutions rather than relying on government intervention alone.

The proposed funds would be allocated to support mitigation efforts in high-risk regions, offer premium relief for vulnerable consumers, create a research foundation to investigate long-term insurance affordability and availability strategies, and pilot programs that could justify significant government investment. ACIL emphasizes that insurers need to financially support these initiatives if they genuinely endorse mitigation and resilience measures.

Shandiman stresses that establishing such a fund would be a crucial step in rebuilding public trust in the insurance sector. He notes that insurers tend to propose solutions that do not require them to provide financial contributions, casting doubt on their commitment to true reform. This reluctance is juxtaposed with their record profit levels, while consumers in high-risk areas continue to face challenges in securing affordable insurance coverage.

The ACIL initiative suggests that the proposed funding could also be used to test and model strategies in support of the ICA's previously proposed $30 billion flood defense program. This program, outlined by ICA last month, calls for governmental investment over the next decade to alleviate growing concerns surrounding home insurance affordability.

The Insurance Council of Australia has acknowledged Mr. Shandiman's proposal but has not publicly committed to the initiative.

Published:Tuesday, 18th Mar 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Envest Group Unveils TLI Underwriting for Heavy Motor Fleets

31 Dec 2025: Paige Estritori

Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialised insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more

IAG Boosts Profit Forecast Post-RACQ Insurance Acquisition

31 Dec 2025: Paige Estritori

Insurance Australia Group (IAG) has announced an upward revision of its annual profit forecast, attributing the increase to the recent acquisition of RACQ Insurance. The company now anticipates a reported insurance profit ranging between $1.55 billion and $1.75 billion for the financial year, marking a $100 million enhancement from the previous estimate. - read more

NTI Report Highlights Human Error as Leading Cause of Major Truck Crashes

31 Dec 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC), supported by National Transport Insurance (NTI), has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings underscore the critical need for targeted interventions to enhance road safety within the transport industry. - read more

Hutch Underwriting Launches Comprehensive Professional Indemnity Insurance for Tradies

31 Dec 2025: Paige Estritori

Hutch Underwriting has unveiled a revamped professional indemnity (PI) insurance policy tailored specifically for tradespeople, including electricians, carpenters, and painters. This innovative coverage consolidates protection against advice, design, and incidental cyber exposures into a single, streamlined solution. - read more

Click for more Insurance News

Business Insurance Articles

The Importance of Documentation in Public Liability Claims

Public liability insurance is an essential part of any business's risk management strategy, especially for those operating in Australia. It's designed to protect businesses when they're found legally responsible for injury or damage to third parties due to their operations. But what happens when you need to make a claim? That's where understanding the claims process becomes vital. - read more

The Role of Insurance in Protecting Your Small Business Assets

In the bustling world of small businesses, the phrase 'expect the unexpected' captures the essence of entrepreneurship. While you can plan for success, unforeseen risks are always lurking around the corner. That's where the importance of insurance comes into play. It acts as a safeguard, protecting the lifeblood of your business against potential perils. - read more

Critical Risk Management Strategies for Every Australian Tradesman

Welcome to the crucial world of risk management for Australian tradesmen. Whether you're a seasoned professional or just starting, understanding and mitigating the inherent risks in the trades industry is paramount to both the safety and sustainability of your business. This article intends to guide you through the world of risk management, emphasizing the pivotal role of liability insurance. - read more

The Essential Guide to Liability Insurance for Freelancers

Liability insurance is a type of coverage designed to protect you from claims arising out of injuries or damages to other people or property. For freelancers, who often juggle multiple projects and clients, liability insurance can offer a safety net that reduces financial risk and instability. - read more

Start Here !

Knowledgebase

Insurance broker:
An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.