The Australian Consumers Insurance Lobby (ACIL) has backed Opposition Leader Peter Dutton’s strong posturing against the insurance industry, calling it a necessary step in holding insurers accountable for skyrocketing premiums, unfair practices, and their failure to implement real affordability solutions.
ACIL has written to Mr. Dutton to commend his position on breaking up the insurance sector, an issue that has struck a chord with frustrated consumers across the country. The insurance industry’s response to these remarks—one of panic and pushback—highlights just how resistant it is to scrutiny and reform.
Click the below link to view ACIL's letter to Mr Dutton:
"Peter Dutton’s comments have caused a major stir within the insurance industry, which is exactly what’s needed to drive change," said Tyrone Shandiman, Chairperson of ACIL. "Insurers have treated both policymakers and consumers with contempt for years, putting profit ahead of fairness, resisting meaningful reform, and failing to take appropriate action to improve affordability."
ACIL’s letter to Mr. Dutton outlines key reforms needed to fix the industry, including:
Examining structural reforms, including breaking up the insurance industry, alongside key recommendations from the recent Government Inquiry into the Impact of Climate Risk on Insurance Premiums and Availability.
Putting the insurance industry on notice—clean up their act, or a Royal Commission will be on the table under a Coalition government.
Stronger regulation of the Code of Practice, transferring the three year review process to ASIC.
Independent consumer advocacy in claims and expert reports, introducing public loss adjusters and stricter governance to eliminate conflicts of interest.
"Consumers are fed up. The insurance industry has ignored multiple inquiries, obstructed government interventions like the Cyclone Reinsurance Pool, and lobbied against reforms that would protect policyholders," Shandiman said. " These comments highlight the urgent need to hold insurers accountable and we strongly support a tough stance against the industry’s failures."
For years, insurers have dictated the terms of the market with little oversight, using complex pricing models, reducing coverage, and making it increasingly difficult for consumers to get fair outcomes. Despite multiple government inquiries and consumer advocacy efforts, the industry has failed to take meaningful steps to address affordability and transparency. It is clear that without strong intervention, insurers will continue to prioritise their bottom line over the needs of everyday Australians. ACIL has formally requested a meeting to discuss these issues further and explore solutions to restore fairness and accountability in the insurance market.
"The industry’s dominance and arrogance have gone unchecked for too long. If insurers want to avoid further scrutiny, they need to start putting consumers first. Otherwise, the government must step in and force them to act," Shandiman said.
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