Liability Insurance Australia :: News
SHARE

Share this news item!

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums

Urgent Reforms Needed to Curb Rising Motor Insurance Premiums?w=400

⚠️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
Source: Paige Estritori

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

Share this news item:

Insurance News

Insuregroup's Remarkable Growth in Truck Insurance Policies
Insuregroup's Remarkable Growth in Truck Insurance Policies
27 Dec 2025: Paige Estritori
Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more
Australian Life Insurers Report Significant Profit Increase in June 2025 Quarter
Australian Life Insurers Report Significant Profit Increase in June 2025 Quarter
26 Dec 2025: Paige Estritori
The Australian life insurance sector has reported a substantial after-tax profit of $360 million for the June 2025 quarter, marking a significant increase from the $116 million recorded in the same period the previous year. This impressive growth is primarily attributed to a sharp rise in investment income and improved underwriting performance across key product lines. - read more
Rising Mental Health Claims Impact Australian Life Insurance Industry
Rising Mental Health Claims Impact Australian Life Insurance Industry
26 Dec 2025: Paige Estritori
The Australian life insurance industry is witnessing a significant surge in mental health-related claims, reflecting broader societal challenges and increasing awareness of mental health issues. AIA Australia, a leading life insurer, has reported that mental health claims now account for 23% of its total claims, up from 15% in 2014. This trend underscores the growing prevalence of mental health conditions and their impact on individuals' ability to work and maintain financial stability. - read more
Decline in Australian Life and Income Protection Insurance Premiums
Decline in Australian Life and Income Protection Insurance Premiums
26 Dec 2025: Paige Estritori
Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more
Club Marine Marks 65 Years of Leadership in Australian Boating Insurance
Club Marine Marks 65 Years of Leadership in Australian Boating Insurance
26 Dec 2025: Paige Estritori
Club Marine, Australia's largest recreational boat insurer, is celebrating its 65th anniversary in 2024. Since its founding in 1959 as Marine Hull & Liability, the company has grown from a small operation in Victoria to a nationwide provider of insurance services for the country's boating community. - read more


Business Insurance Articles

Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Insurance Essentials: Protecting Your Small Business with Public Liability Coverage
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
Public Liability Insurance for Events: What Organizers Need to Consider
Public Liability Insurance for Events: What Organizers Need to Consider
Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more
Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals
Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals
For tradesmen and trade professionals, venturing into the world of business comes with its set of challenges and risks. Among the myriad of precautions to consider, one critical safeguard stands out for its ability to protect both the tradesperson and their clients: Public Liability Insurance. This form of coverage is not just a safety net; it is a cornerstone of a responsible business practice within the trade industry. - read more
Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?
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
 Why Every Business Needs Public Liability Insurance
 Why Every Business Needs Public Liability Insurance
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more


Start Here !
Your free liability insurance quote comparison starts here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Insurance Deductible:
the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".