Soaring Insurance Premiums Leave NSW Businesses Underinsured

CEO Daniel Hunter highlighted that the state government's collection of the emergency services levy and stamp duty on insurance has contributed to NSW having the highest-taxed premiums in mainland Australia. This financial burden forces businesses to either absorb the costs or forgo insurance coverage, leaving them vulnerable to unforeseen events.

Hunter emphasized the need for immediate action from both state and federal governments to address the unsustainable rise in premiums. The Insurance Council of Australia supports removing the emergency services levy, noting that it disproportionately affects those least able to afford it and does not fairly reflect the potential need for emergency services.

The NSW government has committed to removing the levy and is consulting on transition arrangements and a replacement model. This situation underscores the urgent need for coordinated reforms to ensure businesses can access affordable and adequate insurance coverage.