The Liberals have pledged to reduce grocery prices through its proposed new state-owned insurance scheme if re-elected.
Premier Jeremy Rockliff said the TasInsure initiative aims to offer small businesses more affordable insurance premiums, potentially lowering costs for consumers.
“With lower insurance premiums, small business can keep the price of goods and services – like groceries – low,” Rockliff said.
“This is all about bringing the cost of living down for Tasmanian families.”
The government claims insurance premiums have increased by more than 35% over the past two years, forcing businesses to raise prices or close altogether.
TasInsure would reduce small business insurance costs by around 20%, according to the Premier.
“It will be cheaper, fairer, ours,” Rockliff said.
Rosetta IGA store owner Chester Wilcox said his business has seen a 25% increase in insurance premiums over recent years.
“It restricts what we can do with reinvesting in the business,” Wilcox said.
He says that savings would likely flow to improved facilities first, given pricing controls occur through “warehousing arrangements”.
Tasmanian Small Business Council CEO Robert Mallett welcomed the TasInsure announcement, saying insurance ranks among the top four largest operating costs for many enterprises.
“The increasing costs of insurance has been a motivating factor for many businesses to under insure or to not have it at all; potentially catastrophic when a sizeable event occurs,” Mallett said.
“Any savings we can make will absolutely ensure that the business survives.”
“It might not necessarily relate straight away to an extra $0.10 off your Doritos or $0.20 off your carrots, but it will ensure that that business stays in business.”
However, RACT CEO Mark Mugnaioni cautioned against “simplistic solutions to complex challenges.”
“The solutions require government, experts and the broader community working together,” Mugnaioni said.
“We have the knowledge. We have the expertise. We have the experience. We have the assets.”
“Why would you invent a new insurance company from scratch when you’ve already got a wholly-owned Tasmanian insurance company right here looking after Tasmanians already?”
He urged the next government to make “targeted, evidence-based investments in resilience” against severe weather events, which have cost Tasmanians more than $2 billion in community losses over the past 12 years.
“The frequency and severity of extreme weather events are expected to increase by more than 40% statewide by 2050,” Mugnaioni said.
He also cautioned the government against using the $2 billion in assets held by the MAIB to bankroll TasInsure.
“That money is there to look after Tasmanians. It is not there to be a payday lender to the government to help fund every idea that they have.”
“If we had any sort of major disaster in Tasmania, $2 billion does not go very far.”
Labor Leader Dean Winter yesterday slammed the TasInsure proposal as “reckless” and “dangerous”.
“A month ago, he was looking to privatise all of Tasmania’s assets and now he says he wants to open a new one,” Winter said.
“This a premier who doesn’t know if he’s coming or going. I wouldn’t trust him to run a bath, let alone an insurance company.”
