Australian insurance council to review coverage gaps

Concerns have been raised about affordability and availability.

The Insurance Council of Australia (ICA) will be reviewing the sector’s options for reforms to improve its contribution to national economic recovery and growth, a statement read.

The review, led by former insurance executive and regulator John Trowbridge and economist Michael Blythe, will summarise practical solutions to problems that have been challenging sectors of the economy for a decade or more.

Concerns over the past decade have been focused on issues of insurance affordability and availability in high risk areas and have identified potential coverage gaps for some consumers and businesses.

There has been a lack of agreement on potential solutions despite issues being well-known, Trowbridge said.

“The consultation paper will review various potential solutions and flag questions for policy makers, stakeholders and the industry to consider in order to move these important issues forward.”

Engagement with stakeholders has started and a consultation paper will be released in March, and a final report including recommendations is expected to be released mid-year.