Liability Insurance Australia :: News

Share this news item!

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums

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.

The Insurance Council of Australia (ICA) has called for urgent action to address the factors driving the significant rise in motor insurance premiums.

In a detailed policy paper, the ICA has outlined a strategic plan, urging government intervention to address key issues like labour shortages, supply chain disruptions, and inefficiencies in accident management practices.

This call to action follows a striking 42% increase in comprehensive motor insurance premiums since 2019, with the average premium now reaching $1052 annually. The underlying cause is attributed to escalating input costs that have outpaced compensatory measures by insurers. These rising costs have also led to a decline in insurer profitability, as evidenced by the increase in claims costs ratio from 89% to 94% over the past six years.

Andrew Hall, CEO of the ICA, emphasized the industry's commitment to cutting expenses through various internal measures like optimizing operations and enhancing the repair workforce's skills. However, he points out that many cost drivers extend beyond the insurance industry's control, necessitating decisive government-led reforms.

The proposed reforms by the ICA aim to tackle multiple areas:

Alleviating skills shortages in motor trades by expanding skilled migration pathways, increasing investment in training for electric vehicle repairs, and boosting apprenticeship completion rates.
Enhancing the automotive supply chain’s resilience by ensuring independent repairers have access to essential parts and obligating manufacturers to guarantee part availability.
Regulating credit hire and accident management companies to protect consumers from misleading practices and inflated prices.
Implementing regulations on towing and storage fees, following Queensland's model to cap excessive charges and effectively enforcing reforms like WA’s Towing Services Bill 2024.
Strengthening efforts to combat insurance fraud by improving collaboration between insurers and law enforcement and enhancing fraud detection initiatives.
Revising written-off vehicle rules in NSW to allow repairable vehicles to be re-registered after passing stringent safety checks, aligning them with practices in other states.

The ICA's proposed roadmap highlights necessary steps to streamline processes, eliminate systemic inefficiencies, and deliver fairer costs across the insurance landscape, thereby relieving pressure on consumers. The suggested interventions, if adopted, could lead to a more sustainable and balanced market, benefiting both insurers and policyholders.

Published:Tuesday, 25th 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

Addressing Human Factors in Rising Australian Truck Insurance Claims

04 Jun 2026: Paige Estritori

Gallagher's recent guidance for Australia's heavy vehicle sector identifies fatigue, inattention, distraction, and inappropriate speed as major contributors to truck incidents and related insurance claims. This analysis is based on recent crash data and regulatory expectations, highlighting the need for comprehensive risk management strategies within the transport industry. - read more

Hostplus and MetLife Extend Partnership to Strengthen Member Insurance Offerings

03 Jun 2026: Paige Estritori

Hostplus, a leading Australian superannuation fund, has announced the extension of its group insurance partnership with MetLife Australia until June 2028. This strategic move aims to enhance the insurance benefits available to Hostplus members, reflecting the fund's commitment to providing comprehensive and cost-effective coverage. - read more

Nautilus Marine Insurance Celebrates 21 Years with New Brand Identity and Team Expansion

03 Jun 2026: Paige Estritori

Nautilus Marine Insurance, a leading provider in Australia's marine insurance sector, has marked its 21st anniversary by unveiling a refreshed brand identity and expanding its team with strategic appointments. This evolution underscores the company's commitment to growth and its dedication to serving the marine community. - read more

Zurich Introduces AI-Powered Cyber Insurance Solution for Australian Businesses

03 Jun 2026: Paige Estritori

Zurich Financial Services Australia has unveiled 'Prime One', a cutting-edge cyber insurance product designed to bolster the digital resilience of Australian businesses. Developed in partnership with Cowbell, a specialist in adaptive cyber and specialty insurance solutions, 'Prime One' leverages artificial intelligence to streamline the underwriting process, offering rapid and tailored coverage. - read more

Government Unveils Major NDIS Reforms Targeting Over $36 Billion in Savings

03 Jun 2026: Paige Estritori

The Australian government has announced substantial reforms to the National Disability Insurance Scheme (NDIS) as part of the 2026 federal budget, aiming to save more than $36 billion over the next four years. These changes are intended to curb the scheme's rapid growth and ensure its sustainability, while refocusing support on individuals with significant and permanent disabilities. - read more

Click for more Insurance News

Business Insurance Articles

How Public Liability Insurance Can Save Your Business During a Crisis

Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more

Key Benefits of Comparing Public Liability Insurance Rates for Australian Businesses

As an Australian business owner, you face numerous financial risks daily. Accidents can happen at any time, whether it's a slip and fall on your premises or damage caused by your products or services. These incidents can lead to costly legal actions that may put significant strain on your business finances. - read more

Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance

Public liability insurance is a crucial aspect of managing risk for businesses in Australia. This type of insurance covers costs associated with claims made against a business for property damage or personal injury caused during business operations. - read more

5 Tips for Reducing Your Liability Insurance Premiums in Australia

Liability insurance is a crucial form of protection that offers coverage against claims resulting from injuries and damage to people or property. Within the bustling landscape of Australian businesses, possessing this form of insurance is key to financial security and continuity. It acts as a safety net, ensuring businesses can manage risks without bearing the full brunt of potentially costly legal claims. - read more

Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?

Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more

Start Here !

Knowledgebase

No-Fault Insurance:
A type of car insurance where your insurer pays for your damages regardless of who is at fault in an accident.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to 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 vaidating 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.

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums

Share this news item:

Start here!