NSW Budget Prioritizes Resilience, Aimed at Insurance Affordability
NSW Budget Prioritizes Resilience, Aimed at Insurance Affordability
Unveiling the 2024-25 budget, the Minns government has announced a substantial allocation of $5.7 billion over the next four years focused on disaster response and natural calamities, with Australian government contributions included.
Among the key initiatives, $525 million is set aside for the Resilient Homes Program in the Northern Rivers and Central West, promoting voluntary home buybacks and flood-proofing just to name a few enhancements. Meanwhile, the Resilient Lands Program will receive $87.4 million aimed at creating new housing and land opportunities in Northern Rivers.
"The focus on resilience is truly commendable," stated Andrew Hall, CEO of the Insurance Council of Australia. "By proactively addressing the need to safeguard properties and human lives from the increasing menace of severe weather, the government is paving the path for improved insurance scenarios."
An equally notable aspect of the budget is the government's renewed commitment to replacing the current insurance-based emergency services levy (ESL) with a property levy mechanism.
According to the budget documents, growing needs for emergency services spurred by climate change and frequent natural disasters are driving the push for change. The documents mention, "Transitioning from the ESL to a broader-based property levy would alleviate the pressure on insurance premiums and distribute the cost more equitably among all property owners."
Insurers have long been advocating for such reforms. Mr. Hall praised the move, remarking, "Eliminating the ESL will definitely reduce insurance costs for customers in NSW. The existing system has long penalized policyholders especially those living in flood-prone areas, already burdened by hefty insurance premiums."
IAG, another major player in the insurance arena, also lauded the budget. Nick Hawkins, CEO and MD, commented, "Measures like voluntary home buybacks, planned relocations, house raising, and retrofits are critical. These steps will not only enhance safety but also secure long-term protection for residents in high-risk zones."
The budget papers project a significant growth in ESL-related revenue, estimating an uptick of $205.6 million by 2027-28 when compared to the previous half-year review of 2023-24. This increase highlights the provisioning of additional resources to elevate emergency services for the NSW community.
For the fiscal year 2024-25, the government anticipates collecting around $1.32 billion in ESL revenue, with projections for the subsequent years being $1.27 billion in 2025-26, $1.22 billion in 2026-27, and $1.24 billion in 2027-28.
However, insurance duty revenues have observed a slight decline, revised downward by $7 million for 2023-24 and by $34 million over the next four years up to 2027-28, a situation attributed to fluctuations in year-to-date collections.
From Insurance News Magazine: How Government Disaster Payouts Could Drive the Search for a "Better Way" on Climate Adaptation.
Published:Thursday, 20th Jun 2024
Source: Paige Estritori
Share this news item:
| Insuregroup's Remarkable Growth in Truck Insurance Policies 27 Dec 2025: Paige Estritori Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more |
| Australian Life Insurers Report Significant Profit Increase in June 2025 Quarter 26 Dec 2025: Paige Estritori The Australian life insurance sector has reported a substantial after-tax profit of $360 million for the June 2025 quarter, marking a significant increase from the $116 million recorded in the same period the previous year. This impressive growth is primarily attributed to a sharp rise in investment income and improved underwriting performance across key product lines. - read more |
| Rising Mental Health Claims Impact Australian Life Insurance Industry 26 Dec 2025: Paige Estritori The Australian life insurance industry is witnessing a significant surge in mental health-related claims, reflecting broader societal challenges and increasing awareness of mental health issues. AIA Australia, a leading life insurer, has reported that mental health claims now account for 23% of its total claims, up from 15% in 2014. This trend underscores the growing prevalence of mental health conditions and their impact on individuals' ability to work and maintain financial stability. - read more |
| Decline in Australian Life and Income Protection Insurance Premiums 26 Dec 2025: Paige Estritori Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more |
| Navigating Pre-existing Conditions in Income Protection Insurance Income protection insurance is a safeguard that provides individuals with financial stability in the event they are unable to work due to illness or injury. This type of insurance typically replaces a significant percentage of the insured's income, ensuring that their financial commitments can still be met during periods when they cannot earn an income through employment. - read more
|
| Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
|
| Family Planning: Exploring Life Insurance Options for New Parents Stepping into parenthood comes with a myriad of responsibilities, one of which includes securing your family's financial future. Life insurance serves as a financial cornerstone for young professionals who are navigating the complexities of family planning. Recognizing the significance of the role insurance plays can empower new parents to make informed decisions that corroborate their family's safety and well-being. - read more
|
| A Guide to the Australian Income Protection Insurance Landscape Income protection insurance stands as an unsung hero in the tapestry of financial security, often overlooked but irreplaceable in its role. Designed to provide a safety net, it ensures that individuals can continue to receive a portion of their income should they become unable to work due to illness or injury. It’s about peace of mind, knowing that life's unforeseen events won't sweep the ground from beneath you. - read more
|
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.