Reducing state government taxes in Australia is perhaps the best and fastest way to bring relief for the insurance customers who are burdened by higher insurance premium in the aftermath of rising natural disasters according to QBE chairman Mike Wilkins.
Mr Wilkins spoke about the government’s insurance taxes while addressing the company’s annual general meeting on 9 May 2025.
He said, “We acknowledge the rising cost of premiums and the strain this can place on households and businesses. But insurance premiums are a reflection of risk, and the only sustainable way to improve affordability is to reduce the underlying risk. The average cost of insurance rose 16% in 2024, and even more for customers in flood- or fire-prone areas.
Mr Wilkins said, “Taxes add 20% to 40% to the price a customer pays for a premium and state governments are the biggest beneficiaries. In 2023-24 state governments collected nearly A$8.6bn ($5.5bn) in stamp duty and other levies from insurance customers, that's A$3.5bn more than the entire insurance industry’s profit made in that year.”
Mr Wilkins was critical of the policymakers for spending 97% of disaster funding on recovery after catastrophes and only 3% on mitigation projects, like building dams and levees. He said this should change, it is not sustainable, economically or socially, to continue down this path.
He said, “The insurance industry is highly regulated and while we support the need for strong oversight, it’s essential that regulation is balanced and forward-looking. Regulatory settings should continue to support a sustainable and resilient sector, one that can adapt to emerging risks and continue to deliver value over the long term.”
QBE delivered a statutory net profit after tax of A$1.779bn in 2024. This was a 31% improvement over the company’s 2023 result reflecting the steady progress that QBE continues to make. The company’s capital position and balance sheet remain strong.