In what is becoming an increasingly popular trend, the Federal Government is considering selling off its veteran’s insurance scheme to the private sector.

The Department of Veterans’ Affairs has announced it is accepting tenders for the review of the Defence Service Homes Insurance Scheme until February 14. The Government is concerned that a fall in veteran numbers may force the scheme to use its reserves to stay afloat in the future.

Federal and state governments have shown more interest in selling insurance interests to insurance companies since the industry returned to profitability three years ago. The industry is already awaiting information on the sale of the Northern Territory Government’s Territory Insurance Office in the next month.

A spokesman from the Department of Veterans’ Affairs told Sunrise Exchange News he couldn’t publicly comment about how many insurers have shown interest in the scheme, which has about 100,000 policyholders.

He said the briefings across all states to the Defence Service Homes Insurance Scheme policyholders this week and next week are more “an opportunity for people to put forward their concerns and views about the review”, rather than an information session.