The Federal Budget revealed: Here’s what it means for the insurance industry

At a glance: Future is focus 

Themed around ‘building a better future’, the 2022-2023 Budget’s key objectives are to provide relief to Australian households facing costs of living pressures, and to invest in building a strong, more resilience economy for the future.  

At a glance, the Budget addresses cost-of-living pressures by announcing investments into more affordable childcare, extended paid parental leave and an initiative to increasing affordable housing. 

In its aim to drive economic resilience, the Budget announces investments into a range of future-first initiatives, including a renewed focus on climate change. A $42.6 million package has been announced to restore the Climate Change Authority, which aims to drive greater transparency and accountability on climate action. 

Reforming insurance affordability and availability 

Crucially for the insurance industry, the Budget include a $22.6 million reform package over 4 years, which aims to address the cost and availability of insurance in disaster-prone areas.  

This package will go towards: 

• Creating a Hazards Insurance Partnership, a forum enabling collaboration between insurers, government and other stakeholders designed to reduce extreme weather risk 
• Creating a national dataset on issues around insurance affordability, underinsurance, as well as non-insurance issues, designed to assist with policy decision-making 
• Creating a mitigation solutions repository housing proven and reliable risk mitigation measures, which can be deployed when necessary.  
• Scoping out key opportunities public-private partnerships which reduce risk and put downward pressure on insurance premiums. 

The Budget also officiates the Government’s previously announced commitment to spending $200 million per year on disaster prevention and resilience initiatives through the Disaster Ready Fund.  

NIBA supports the Federal Government’s Budget commitment to addressing the availability and affordability of insurance and building resilience for future disasters.  

For more information, read the full Federal Budget here.