Particle.news
Download on the App Store

Tasmania Drops State-Owned Insurer Plan, Sets Up TasInsure as Not-for-Profit Authority

The move shows the government choosing lower risk over a state-run insurer.

Overview

  • TasInsure, which the Rockliff government redefined on Thursday, will be created by legislation after the release of an implementation plan.
  • The new body will oversee the market, step in when cover is unavailable, partner with insurers and reinsurers, and build advisory and comparison tools to encourage competition.
  • Opposition parties and an influential independent called the change a backflip and a hoax, but Premier Jeremy Rockliff denied breaking a promise and said the new path can deliver better outcomes.
  • The government set the implementation cost at A$4.2 million, and Labor said it remains unclear how the overhaul will lower premiums for households and small businesses.
  • Industry groups had warned the original state insurer could be costly, citing analysis that projected up to A$13 million in yearly losses, and RACT welcomed the scaled-back plan as a step toward better affordability.