State Insurance Move Offers Hope for Fairer Farm Premiums

TasFarmers views the Liberal party's initiative to establish a state-owned insurer, should it form government,  as an opportunity to address the rising cost of doing business in Tasmania.

The proposal, which TasFarmers understands includes workers' compensation insurance, has the potential to drive down premiums that have become increasingly unsustainable for agricultural employers, especially in sectors like shearing.

TasFarmers CEO, Nathan Calman, said insurance costs have spiked in recent years across Tasmania, and for many farm businesses, it is pushing essential business activities beyond viability.

Mr Calman said, “The cost of workers' compensation insurance in industries like shearing is a direct threat to the sector's future. If this new model brings relief, it will be a welcome shift."

“Today's announcement, which will see small business insurance costs reduce by 20% is a major win for the state’s primary producers.

"Our members will rightly be asking how this scheme is governed and what safeguards exist to protect against systemic shocks

"But the principle of a public option in the insurance market, if executed responsibly, could inject competition and bring prices back to fair levels," said Mr Calman.

TasFarmers is urging the Government to ensure the new insurer is designed with strong sector input and aligned to the realities of farming operations.

"We look forward to seeing this initiative presented to Parliament for the necessary scrutiny, and we’ll be pushing to see it deliver broad cross-sector benefits, not just for urban homeowners but for Tasmania’s critical primary producers.

"A successfully implemented policy will support the sustainability of the agriculture industry's future," said Mr Calman.