Premier Jeremy Rockliff has avoided providing any evidence for his election promise that a state-owned insurance company would cut premiums by $250.
New Labor leader Josh Willie pressed the premier in parliament on Tuesday, asking for business-case modelling to back up the headline savings claim made during the campaign.
“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 sidestepped the question, instead pointing to skyrocketing premiums faced by households and businesses.
He blamed “market failure” in the industry and pointed to a Queenstown business owner who had copped a 300% premium hike.
Willie argued TasInsure looked more like an election gimmick, complete with “jackets, hats, stubby holders and stickers” 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,” Willie said.
Independent experts have branded the scheme ‘reckless’, warning it would dump large financial risks on taxpayers.
The Insurance Council of Australia also criticised the plan, saying it would shift risk from a “functioning private market onto the public purse”.
Rockliff defended the idea, pointing to bumper profits by national insurers, including IAG’s 51% rise to $1.36 billion and Suncorp’s 52% jump to $1.8 billion.
“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,” he said.
“We have a solution in TasInsure … but how about we work together to ensure that we’re in the corner of mums and dads and small businesses in this community.”
Pressed again by Willie, Rockliff said he expected “state-based insurers” to pop up across the country.
“We’re not followers here in Tasmania. We’re leaders and so I look forward to the policy positions of other states and territories or indeed oppositions that replicate … TasInsure,” he said, drawing laughter from the house.
“Whether that be VicInsure or WAInsure or QLDInsure.”
The government has committed to introducing legislation to set up TasInsure within its first 100 days and is consulting with Treasury and groups including the RACT.
Liberal Party documents say this will allow for the insurer to be “set up during 2026”.
