Minister Hockey’s invitation to take the “most taxed insurance in the world” argument to the HIH royal commission is reportedly being taken up by the insurers with considerable enthusiasm. ICA Executive Director Alan Mason said governments around Australia need to ensure the industry and consumers are not unfairly burdened by “inappropriate taxation”.

Giving some indication of the line the insurers may take before the royal commissioner, Mr Mason pointed out that government-run schemes don’t appear to be particularly accountable. “In the private sector we are accountable and our results are highly visible,” he said. “The same cannot always be said for the public sector, particularly in the management of statutory insurance schemes.

 “All around the country there is evidence that many of these public sector schemes are in extreme financial difficulty.”

It’s an old message, but one that hasn’t received the sort of attention it should from business and consumer groups and the media. The royal commission may help to tip the balance.