The Liberal Party is proposing to establish a government-owned insurance company, TasInsure, to provide “affordable insurance” across a range of categories for Tasmanians.
The move is at odds with recent party policy; in March, leading up to the State Budget, Premier Jeremy Rockliff announced the possibility of selling the Motor Accident Insurance Board. MAIB is a government-owned insurance company that underwrites the compulsory insurance component of motor vehicle registrations.
Tasmania was formerly home to the Tasmanian Government Insurance Office, a general insurer of the kind being proposed. It was sold by the Liberal-led government in 1993 when Ray Groom was Premier.
Labor criticised the proposal as inconsistent, given the current Premier had “spent last month talking about selling off public assets.” Shadow Treasurer Josh Willie demanded the Premier release costings and a business case.
Economist Saul Eslake was cited as reacting negatively:
“What an absolutely hare-brained idea! The Tasmanian Government is in no position to take on additional financial risks …
It is just about the worst idea to come out of a major political party in Tasmania that I can remember.”
Business entities TCCI and THA were both broadly supportive of the announcement.
Former NSW Government advisor John Macgowan (independent candidate, Clark) said: “The only way to get the budget back in the black is revenue and growth – a harebrained insurance scheme will be a net drain on both.”
Miriam Beswick (Nationals MHA, Braddon) said the cost of insurance is unfair and that it will: “result in good businesses and not-for-profits failing if we don’t address it soon.”
Tasmanian Times is not aware of any modelling showing that a government-backed insurer could in fact offer lower premiums than what is currently available.
Queensland is currently the only Australian jurisdiction with a state-owned insurance office, however QGIF is limited to insuring government agencies.
Media releases on the issue are included below.
Media release – Jeremy Rockliff, Premier, 2 July 2025
Cheaper insurance locked in for Tasmanians
Tasmanians will pay less for insurance under a new State-owned insurance company, TasInsure.
Premier Jeremy Rockliff has announced a major reform to help Tasmanian families and small businesses with rising insurance costs, unveiling plans to establish TasInsure: a Tasmanian insurer focused on fairness, affordability and local protection.
TasInsure will offer affordable insurance for home, contents, small business, community groups, events and regional insurance.
“There is no doubt the national market has failed Tasmanians. Insurance is becoming unaffordable in too many parts of our state,” Premier Rockliff said.
“For too long, Tasmanians have been paying sky-high premiums because they are paying mainland prices to cover mainland insurance claims, or worse, they are being told they simply can’t be covered.
“Tasmanians are rightly sick of having to pay higher premiums for mainland payouts and profits. That’s why we’re stepping in with a Tasmanian solution, one that puts people ahead of profits.
“Under a re-elected Liberal Government, Tasmanians will be able to access state-backed insurance at Tasmanian prices.
“Under TasInsure, whether you are a family, a farmer, a community group, event organiser, or a small business – you will be protected, paying Tasmanian prices.”
Australian Insurance firms raked in over $6 billion in profits last year alone. Insurance premiums in Tasmania have risen by more than 35% in just two years, with many households being hit even harder. Some small businesses are now unable to get essential cover, leaving them exposed and at risk of closure.
MAIB, in comparison, has seen premiums rise by just 5%. Under TasInsure, Tasmanian households will save $250 and small businesses 20%.
“TasInsure will give Tasmanians peace of mind. Whether you’re a family trying to protect your home or a small business keeping your doors open, you deserve access to fair and reliable insurance,” Premier Rockliff said.
TasInsure will operate in conjunction with MAIB, utilising the strong MAIB balance sheet to establish the business. It will not impact compulsory motor insurance premiums.
Initial products offered by TasInsure will include:
- Home and contents insurance;
- Small business insurance;
- Community groups and event insurance; and
- Regional insurance.
“Tasmanians work hard to build their homes and livelihoods. TasInsure will ensure they can protect them, with a trusted, local insurer that understands our communities and stands by them,” Premier Rockliff said.
“It will be cheaper, fairer, ours.”
Media release – Dean Winter MP, Labor Leader, 2 July 2025
Jeremy Rockliff’s dodgy insurance deal puts Tasmanians at risk
Jeremy Rockliff is at it again – another big thought bubble, with no real plan, and serious financial risks that haven’t been considered.
Today, he’s announced a brand-new government insurance company – after spending last month talking about selling off public assets.
This is the same Premier who has put Tasmania on a pathway to bankruptcy, couldn’t build a berth at Devonport, and now he wants to make a dodgy insurance deal that will put Tasmanians at further financial risk.
Respected independent economist Saul Eslake had this to say about the announcement:
“What an absolutely hare-brained idea! The Tasmanian Government is in no position to take on additional financial risks. This is the sort of thing I’d expect to come from the Nats … not the Liberals. It is just about the worst idea to come out of a major political party in Tasmania that I can remember.”
Tasmania is in no position to take on this kind of financial risk because the Liberals have completely wrecked Tasmania’s finances.
This also puts the proud Tasmanian insurance business RACT at risk. Were they even consulted?
Let’s be clear – this is a desperate political stunt from a Premier who’s failed to manage the basics and is now making promises he won’t ever deliver. Jeremy Rockliff can’t manage a budget, he couldn’t manage the government businesses, and he certainly shouldn’t be trusted with another term to inflict more financial damage on Tasmanians.
Only Labor has a responsible and fully funded plan to fix the budget, ease cost of living pressures, and protect the public assets that matter.
Media release – Josh Willie MP, Shadow Treasurer, 3 July 2025
Another Spirits fiasco in the making unless Premier answers key questions
Jeremy Rockliff’s latest announcement about state-run insurance is a huge financial risk that requires answers to very serious questions.
Tasmania has already seen the consequences of serious stuff-ups with state-owned companies, with the Spirit of Tasmania fiasco costing taxpayers more than $500 million.
As the CEO of RACT made clear on ABC radio this morning, this latest proposal has the potential to be even more costly.
Jeremy Rockliff needs to answer the following questions today:
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How much funding will his proposal require to set up? Is it $200 million? $500 million? What are the estimated annual operating costs?
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Has he received any advice from Treasury, and is there a business case?
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Cost of living is causing pain now. How many years before this new government business is up and running?
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How can he promise significantly lower premiums, without the new government business running at a massive loss?
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Will the company be underwritten with reinsurance? If so, how will he deliver the savings he’s promising? If not, doesn’t this expose taxpayers to huge financial risks?
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If he’s using the MAIB to provide the capital required, how will he ensure car regos won’t rise, or money set aside for road crash victims isn’t being put at risk?
Tasmanians don’t trust Jeremy Rockliff to run government businesses after his massive stuff up with the Spirits.
If he can’t answer the most basic questions about his latest desperate promise, Tasmanians will be rightly concerned that this will quickly turn into an even bigger fiasco.
Media release – Tasmanian Chamber of Commerce and Industry (TCCI), 2 July 2025
TCCI welcomes Liberals’ insurance proposal
The Tasmanian Chamber of Commerce and Industry (TCCI) has welcomed today’s announcement by the Tasmanian Liberals to tackle the cost of insurance.
TCCI CEO Michael Bailey said insurance costs are a growing concern for businesses across the state and that meaningful reform is needed.
“Insurance premiums have increased significantly in recent years, and that’s having a direct impact on Tasmanian businesses as well as the broader community,” Mr Bailey said.
“The business community has consistently raised insurance costs as a major issue in our quarterly Tasmanian Survey of Business Expectations. It’s an issue that’s not going away.
“Anything that brings down the cost of insurance while maintaining comprehensive and reliable coverage is absolutely welcome. The next Tasmanian Government must pull every lever it can to help reduce cost pressures and improve business confidence.”
Mr Bailey said the proposed savings of up to 20 per cent for small businesses under TasInsure could make a real difference.
“For many Tasmanian businesses – particularly small and regional operators – that level of saving could be the difference between staying open or shutting their doors,” he said.
“We look forward to seeing more detail on how TasInsure will operate, and will continue to engage with the next Government on how to make insurance more affordable and accessible for Tasmanian businesses.”
Media release – Tasmanian Hospitality Association, 2 July 2025
Insurance Reform for Hospitality Operators and Community Clubs a big tick
The Tasmanian Hospitality Association strongly endorses today’s announcement of TasInsure – a state-backed insurer designed to provide fair and affordable coverage for local businesses.
The hospitality sector has been grappling with crippling insurance premiums for years, with some operators closing their doors or going without cover due to unsustainable costs.
“This is a major win for Tasmania’s hospitality industry. Insurance has become one of the biggest pain points for venues – with premiums rising by more than 35 per cent in just two years, it’s not just unfair, it’s unaffordable,” THA chief executive Steve Old said.
“Some of our members have been refused coverage entirely, while others have had to take enormous financial risks just to stay open. That’s not a viable or responsible situation – and it’s certainly not good for business confidence.
“Today’s announcement of TasInsure will help level the playing field. It’s a sensible, locally focused solution to a national market failure, and one the THA has been strongly advocating for.”
With Tasmania’s hospitality sector the third largest employing industry which supports tourism and regional economies, ensuring operators can access affordable insurance is essential.
“Whether it’s a small bar, a country pub, or a family-run restaurant, every venue deserves to be able to insure itself properly without it becoming a financial burden,” Mr Old said.
“We commend the Government for recognising the urgency of this issue and delivering a practical fix. This reform will protect jobs, protect businesses, and restore some much-needed confidence across our industry.”
The announcement is also a huge win for community sporting clubs, who like some hospitality businesses have been facing the impossible choice between inadequate coverage or closure.
“Clubs and RSL’s are vital community hubs. They support local sport, provide social connection, and offer a safe and inclusive space for people of all ages,” Clubs Tasmania project manager Tom Darke said.
“We’ve seen clubs forced to reduce services, cancel events, or even shut their doors altogether because they couldn’t find affordable or suitable insurance. That’s not just a problem for the clubs – it’s a problem for entire communities who rely on them.
“An example is the King Island Club, which has been operating without building insurance after its premiums skyrocketed from $25,000 to $70,000 around 18 months ago.”
Statement – John Macgowan, independent candidate for Clark, 2 July 2025
Who is underwriting this?
For the last two decades state governments around the country have ditched insurance provision in the wake of massive unfunded liabilities running into the billions.
Recovering blown out State-backed insurance schemes has been a boon to the insurance industry, who have stepped in around the country to ‘save’ ill conceived State-run schemes that inevitably become unsustainable, diminishing returns for taxpayers in the process.
Left to their own devices, Jeremy Rockliff and the Liberals have sat in boardrooms and walked out with bad deals from Australian Rules footballers and Brazillian fish mongers. If they can’t get value for taxpayers from those guys, the insurance industry will eat them alive.
The only way to get the budget back in the black is revenue and growth – a harebrained insurance scheme will be a net drain on both.
Media release – Miriam Beswick, Nationals’ MHA for Braddon, 2 July 2025
OVERDUE INSURANCE INTEREST WELCOME BUT QUESTIONS REMAIN
Braddon Nationals candidate Miriam Beswick has welcomed the long overdue interest in addressing skyrocketing insurance premiums from the Liberals.
“The cost of insurance has been raised with me time and time again. Just yesterday I spoke publicly about the need to address the problem following my trip to the west coast.
“I first raised the issue in the context of the future of Camp Clayton and the impact exorbitant insurance costs were having its ability to offer its core services. So I welcome the Liberals acknowledging that it’s a major burden on businesses and organisations across the state.
“So many organisations I deal with have been left facing harrowing decisions due to the cost of insurance. It’s not fair and it’s going to result in good businesses and not-for-profits failing if we don’t address it soon.
Mrs Beswick said she will investigate the cost and details of the Liberals’ plan to establish a state-based insurer before making further comment.
“We’re in a budget crisis. If we are going to go down the path the Liberals are proposing, we need to know much it’s going to cost taxpayers each year.
“I look forward to seeing more details of the plan and also what Labor’s solution to the problem involves. The bottom line is – we have to do something.”
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