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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What easing liability pricing momentum means for Australian businesses

10 Nov 2026: Paige Estritori

Australia’s liability insurance market appears to be moving into a more competitive phase, after several years in which many businesses faced firmer premiums and tighter underwriting. Recent analysis of the Australian Prudential Regulation Authority’s National Claims and Policies Database suggests pricing momentum is moderating in parts of the professional indemnity and public and product liability market, but the shift is not uniform and should not be read as a guaranteed premium fall for every business. - read more

Click for more Insurance News

Business Insurance Articles

Public Liability Insurance in Australia: What It Covers and How It Works

Public liability insurance can help Australian businesses manage the financial impact of third-party injury or property damage claims connected with their business activities. This guide explains what it may cover, what it usually excludes and how it works in practice. - read more

The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs

In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown â€“ risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more

The Top 5 Risks Small Businesses Face and How to Manage Them

Running a small business can be rewarding, but it also means dealing with risks that can affect cash flow, operations, customers and reputation. Understanding the main risk areas can help business owners plan ahead, reduce avoidable exposure and consider where insurance may fit within a broader risk management approach. - read more

Freelancer or Employee? Understanding the Difference and the Liability Implications

Freelancers and employees can look similar in day-to-day business operations, but the legal and liability implications are different. In Australia, classification affects tax, superannuation, employment entitlements, workers compensation, workplace safety duties, insurance and contract risk. - read more

Start Here !

Knowledgebase

Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.

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). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. 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 independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.