Tasmania’s new Labor leader has demanded evidence to support Premier Jeremy Rockliff’s claim that a proposed state-owned insurer would deliver households $250 in savings.
In the first parliamentary question time since the July election, Josh Willie pressed Rockliff on Tuesday to produce modelling for the TasInsure policy. The Liberal government has promised the company would cut premiums and lower grocery prices.
“Do you have a business case for TasInsure or any modelling that says that Tasmanians will save $250 on their insurance or that grocery prices will be cheaper because of your policy?” Willie asked.
Rockliff avoided providing figures, instead highlighting soaring premiums for households and businesses. He cited a Queenstown operator whose bill had jumped 300%, blaming “market failure” in the industry.
Willie dismissed the plan as an election gimmick, pointing to campaign merchandise and a signwritten Launceston office.
“Tasmanians are telling me they are struggling with insurance premiums and the cost of doing business but they’re sceptical of your TasInsure policy and question whether it’s the right approach or even feasible,” he said.
Independent experts have labelled the scheme “reckless,” warning it would expose taxpayers to significant risks. The Insurance Council of Australia also criticised the policy, saying it would transfer liabilities from a “functioning private market onto the public purse.”
The ICA also warned of “perverse economic and financial outcomes for taxpayers” should the proposal be enacted.
Calls for tighter oversight of insurance premiums in Australia are growing amid household cost pressures, but industry leaders warn against political interference. Citing California’s failed rate controls, they argue affordability should instead be tackled through tax reform and investment in risk reduction, not caps that risk destabilising the market.
“When families and small businesses are underinsuring or not insuring at all and the insurance companies are making billions of dollars of profit, the market is broken,” Rockliff said.
“We have a solution in TasInsure … how about we work together to ensure that we’re in the corner of mums and dads and small businesses in this community.”
He suggested other states could follow Tasmania’s lead. “Whether that be VicInsure or WAInsure or QLDInsure,” Rockliff said, prompting laughter in the chamber.
The Liberal government has pledged to legislate for TasInsure within its first 100 days, working with Treasury, the RACT, and industry stakeholders. Party documents state the insurer, to be set up under the Motor Accidents Insurance Board, could be operational during 2026.
Do you think a state-owned insurer like TasInsure could really lower premiums, or would it leave taxpayers carrying the risk? Share your insights in the comments below.
