Senior figures from Australia’s insurance industry convened with regulatory authorities on Oct. 30 at a roundtable hosted by the Insurance Council of Australia (ICA).
The roundtable was designed to facilitate direct dialogue on how regulation shapes both the affordability and accessibility of insurance products, as well as the broader factors influencing claims costs.
A central topic was the pursuit of greater regulatory efficiency and productivity, in line with the federal government’s ongoing productivity initiatives.
ICA chief executive officer Andrew Hall described the meeting as an important opportunity for engagement between industry and regulators.
“Today was a timely and important conversation with senior executives from our regulators APRA, ASIC, and leaders across the industry. Discussions like this are critical in ensuring we can continue to drive our industry forward. I thank all who attended the roundtable and we look forward to our ongoing regulatory engagement,” he said.
The ICA indicated that it would continue to collaborate with regulatory bodies as the Council of Financial Regulators embarks on a detailed review of financial services regulation.
The roundtable followed the ICA’s recent submission to the Productivity Commission, in which the council outlined a five-point plan intended to strengthen the insurance sector’s efficiency and resilience.
The submission addressed several key areas, including tax reform, climate risk management, digital innovation, workforce flexibility, and healthcare investment.
The ICA also raised concerns about the feasibility of a net cash flow tax (NCFT) for insurers, citing the sector’s exposure to natural disaster volatility.
The ICA’s recommendations began with a call for changes to the current tax system.
The council argued that state-based levies, such as stamp duties and the New South Wales Emergency Services Levy, can significantly increase insurance premiums, sometimes by up to 30% in addition to the Goods and Services Tax.
The ICA also advocated for a lower corporate tax rate and greater alignment of regulatory oversight through the Council of Financial Regulators.
Another major focus was the financial impact of extreme weather. The ICA reported that since 2010, insurance claims from natural disasters have totalled $34 billion, with recent years showing a marked increase.
The council recommended the development of a national climate risk database, the introduction of standardised home resilience ratings, and the creation of a $30.15 billion fund for flood mitigation.
Digital transformation was also highlighted as a priority. The ICA proposed that existing legal frameworks be used to oversee artificial intelligence, rather than introducing new AI-specific regulations.
The council further recommended improving data access and shifting to outcomes-based privacy rules to reduce compliance burdens and support operational efficiency.
To address workforce issues, the ICA called for a streamlined process for recognising prior skills and the removal of unnecessary licensing requirements, aiming to reduce recruitment times and support labour mobility, especially during disaster recovery periods.
The council’s final recommendation focused on preventive healthcare, particularly mental health. The ICA supports a National Prevention Investment Framework, suggesting that early intervention can help lower both healthcare and insurance costs.
The council noted that mental health-related absences tend to be longer than those for physical injuries, leading to increased costs for both employers and insurers.
The ICA’s ongoing engagement with regulators and its reform agenda reflect the sector’s efforts to balance compliance requirements with the need for operational efficiency and resilience in a changing risk environment.
