ICA Unveils Strategy to Combat Rising Motor Insurance Premiums
ICA Unveils Strategy to Combat Rising Motor Insurance Premiums
0
The Insurance Council of Australia (ICA) has released a comprehensive report titled 'Motor Insurance Policy Paper – A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019.
This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers.
The report identifies several key factors contributing to the rise in premiums:
Claims Costs: The average claims cost has risen by 42% between 2019 and 2024, mirroring the increase in premiums. This escalation reflects higher expenses for vehicle replacement, parts, and labor, as well as the growing complexity and integration of vehicle technology.
Repair Costs: Industry data indicates that repair costs have climbed 26% since 2022, driven by rising wages, more expensive spare parts, and longer repair times. Repair bills now constitute a significant portion of overall claims expenses.
To address these challenges, the ICA's roadmap proposes several strategic initiatives:
Regulatory Reforms: Advocating for amendments to existing regulations to streamline processes and reduce unnecessary costs associated with claims and repairs.
Technological Integration: Encouraging the adoption of advanced technologies to enhance vehicle safety and reduce the frequency and severity of accidents.
Consumer Education: Implementing programs to inform consumers about factors influencing insurance premiums and promoting practices that can lead to cost savings.
For transport business owners, fleet managers, and self-employed drivers, understanding the dynamics behind rising insurance premiums is crucial. By staying informed about industry trends and participating in initiatives aimed at cost reduction, stakeholders can better navigate the evolving insurance landscape.
Additionally, exploring insurance options that offer tailored coverage and leveraging group purchasing power can provide more competitive rates. Engaging with insurance brokers who specialize in the transport sector can also yield policies that align with specific business needs and risk profiles.
In conclusion, the ICA's roadmap serves as a pivotal step towards addressing the systemic cost drivers behind rising motor insurance premiums. Through collaborative efforts between industry stakeholders and regulatory bodies, there is potential to achieve more sustainable and affordable insurance solutions for all Australians.
Published:Thursday, 26th Feb 2026 Source: Paige Estritori
In a recent legal development, the Federal Court of Australia dismissed an appeal by a logging truck driver, Mr. Bradley Henschke, concerning his insurance claim through the Australian Retirement Trust. The case, Henschke v Australian Retirement Trust [2026] FCA 80, highlights the critical importance of understanding the specifics of insurance coverage within superannuation accounts. - read more
The National Truck Accident Research Centre (NTARC) has released its 2025 Major Incident Investigation Report, shedding light on the primary human factors contributing to significant truck crashes across Australia. The findings emphasize the critical roles of inattention, distraction, and inappropriate speed in these incidents, underscoring the necessity for targeted safety interventions within the transport industry. - read more
The Insurance Council of Australia (ICA) has released a comprehensive report titled 'Motor Insurance Policy Paper – A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019. This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers. - read more
The Australian insurance sector is undergoing a significant transformation, driven by the adoption of artificial intelligence (AI) technologies. Insurers are leveraging AI to enhance operational efficiency, improve customer service, and refine risk management practices, positioning themselves as data-driven, digital-first organisations. - read more
Insurance Australia Group (IAG) has launched the second iteration of its NextGen Ambition Program, an initiative designed to provide high school graduates with a unique opportunity to fast-track their careers in the insurance industry without the need for a university degree. - read more
Life insurance is a crucial consideration for middle-aged to older Australians. It provides financial security for your loved ones in the unfortunate event of your death. Understanding the various options available is vital to making an informed decision. - read more
If you have an income protection insurance plan already - or are thinking about buying one, then you need to be aware that these policies require regular maintenance and careful scrutiny to ensure that they adequately meet your needs. Unfortunately, many people purchase income protection insurance policies only to find out about their shortcomings at claim time. - read more
Estate planning is a critical process that often goes overlooked, but it's essential for securing the financial future of your loved ones and ensuring your assets are distributed according to your wishes. It involves the careful organization and protection of an individual’s estate to minimize uncertainties and facilitate the smooth transfer of assets after their passing. While it may seem complex, understanding the basics of estate planning is necessary for every Australian adult, regardless of wealth. - read more
Many Australians recognise the importance of life insurance, yet a substantial number believe that it's a concern for the later stages of life. This common oversight can lead to missed opportunities for financial security and peace of mind. In this introductory section, we'll address why life insurance is a pivotal component of financial planning for individuals at any age, including the young adults just starting their careers. - read more
Welcome to 'Income Insurance Claims 101', where we navigate the ins and outs of securing your financial wellbeing in uncertain times. As a working Australian, one of the smartest moves you can make is safeguarding your income against unforeseen events that could leave you unable to work. That's where income protection insurance enters the scene – it's not just a policy, it's peace of mind. - read more
Start Here !
Apply now for your free Income Insurance assessment and price
comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
