Tasmanian personal insurer RACT Insurance has joined the Insurance Council of Australia (ICA).

RACT CEO Trent Sayers says it has become important for the insurer to work with ICA as the Tasmanian Government increases insurance taxes.

Stamp duty on insurance transactions was raised from 8% to 10% in the Tasmanian Budget on May 10.

“Tax increases have an impact on the affordability of insurance products and exacerbate an already inefficient and inequitable state insurance tax regime,” Mr Sayers said.

“We need to ensure the interests of Tasmanian insurance policyholders are represented across issues such as flood mitigation and mapping, the increasing number of natural disasters and meeting the recommendations of the Natural Disaster Insurance Review.”

ICA CEO Rob Whelan says RACT will provide a “uniquely Tasmanian perspective” to general insurance issues.