Australia: Insurance Council raises issue of property insurance affordability
Source: Asia Insurance Review | Aug 2020
In an opening statement at a parliamentary inquiry into lessons from the bushfire season, Insurance Council of Australia (ICA) CEO Rob Whelan noted that the affordability of insurance, especially in New South Wales, stood as a major concern.
According to him, the impact of taxes is a direct disincentive for property owners to be insured or have an adequate amount of coverage.
He said that insurers price their premiums on the risks to an individual property and additionally, premiums draw a goods and services tax.
Furthermore, all state and territory governments – with the exception of the Australian Capital Territory – add a stamp duty of between 9-11% which means households and businesses pay between 19.9% and 22% in tax on their insurance policies. A