Brokers have continued to criticise Opposition Leader Peter Dutton’s threat to break up large insurance companies to increase competition and bring premiums down.

As insuranceNEWS.com.au has reported, insurtech founder Scott Norton suggested five alternative ways to help with affordability, and many share his view that Mr Dutton’s vision will not work.

“Premium hikes do not stem from competition issues,” broker Petara Tanuvasa said. “It’s from the lack of disaster mitigation – like flood defences or firebreaks. It forces insurers to raise premiums to cover escalating claims.

“Taxes like GST (10%), stamp duties (9%-11%) and fire service levies (up to 40% in NSW) inflate costs further.”

RepX COO Stacy Finnegan praised Mr Norton for his “salient points”, adding local councils “can play a significant role in reducing home insurance claims” by implementing and enforcing measures for new builds. These include enforcing building standards and codes, preventing development in high-risk areas, implementing flood-proofing requirements, and mandating the use of fire-resistant materials and landscaping practices.

“Increasingly severe weather patterns are going to create further volatility,” she said. “Therefore, we need to all be in this together and not label an industry as ‘rip offs’. That is not helpful.”

Others note industry profits pale in comparison with those of banks.

“Perhaps Mr Dutton should be reminded that 85 Insurers made a profit last year of $5.9 billion between them, and the CBA just made $5.1 billion in six months,” Tasmanian broker Greg Lewer said. “Perhaps it’s actually the banks that are contributing to the woes of Australians in an unfair and inequitable way?”

From the latest Insurance News magazine: How NIBA chief Richard Klipin is ensuring brokers' voices are heard in the corridors of power