Tasmanian Premier Jeremy Rockliff has doubled down on his party’s plan to set up a state general insurer and says others may follow suit.  

He suggests there will be “lots of state-based insurers potentially up and running” in future following his election pledge to open TasInsure for home and contents, small business, community group, events and farm cover.

“I look forward to the policy positions of other states and territories ... that replicate TasInsure, whether that be VicInsure or WAInsure, QueenslandInsure,” he said. “We’re not followers in Tasmania, we’re leaders.

“The people of Tasmania are suffering under higher premiums ... the risk is not commensurate with the high premiums that have been claimed and charged by insurance companies.”  

On the first day of parliament after his Liberal Party won minority rule, the Premier pointed to annual earnings at IAG of $1.36 billion and Suncorp of $1.82 billion – both up more than 50%.  

“When families and small businesses are underinsuring or not insuring at all and insurance companies make billions of dollars of profit, the market is broken,” Mr Rockliff said.

“There is no doubt an intervention in the market, if you like, is needed. Our stated commitment is very real ... I don’t want to see a circumstance where we have increased exposure to floods and fire on the mainland and Tasmanians wear the brunt of that ... We have a solution.”

Mr Rockliff was responding to questions from new state Labor leader Josh Willie, who demanded costings and modelling for TasInsure.

“During the election campaign ... you made hats, jackets, stubby-holders and stickers. You even set up a fake office in Launceston with glossy signs. We have seen the style, Premier, but we haven't seen the substance,” Mr Willie said.  

“It is a very serious issue ... What I’m hearing in the community is that they are very sceptical of this policy. They are concerned that it will expose Tasmanians to financial risk and that it’s not thought through, it’s not feasible and it can’t be delivered.”

Mr Rockliff said: “We have a 100-day commitment. We will do the work. I look forward to receiving advice across departments, including Treasury, when it comes to the commitment of TasInsure, and working with other entities and stakeholders, including the RACT.”  

State Treasurer Eric Abetz told parliament the government is committed to the private sector but “when there is market failure or where there are circumstances where the government can deliver better than the private sector, then of course we will embrace that ... If we can collaborate with the Motor Accidents Insurance Board and the RACT, I have every confidence.”

Mr Willie noted that the Insurance Council of Australia said the plan “poses significant risk to Tasmanian taxpayers”.

He told Mr Rockliff ICA had “slammed your policy as reckless” and all states and territories sold off their government insurance companies “decades ago for good reason”.