There were hats, jackets and a shop front, but when it came to budget day, there was no money for the government’s state-owned insurer.
Creating TasInsure was the Liberals’ key pledge during this year’s state election campaign, with Premier Jeremy Rockliff estimating it could save households $250 a year, and small businesses 20 per cent off their annual premiums.
During the election, Mr Rockliff proposed that the Motor Accidents Insurance Board (MAIB) would be expanded to create TasInsure.
The premier promised legislation establishing TasInsure would be introduced in the new parliament’s first 100 days, so it could start operating in 2026.
Tasmanian Liberals promise new state-owned insurance company
But since the election, the government has instead promised a scoping study into its feasibility.
Mr Rockliff has refused to publicly release any modelling or calculations backing up his claims that TasInsure would save Tasmanians money, claiming it would put the new company at a financial disadvantage.
He has repeatedly said those claims were based on price rises in interstate and global insurance premiums and the margins of certain insurance providers.
Documents released to the ABC under right-to-information laws reveal no record of advice or modelling being sought from the Department of Treasury and Finance prior to TasInsure being announced.
Instead, the first communication between the Liberals and Treasury about TasInsure was on July 16 — two weeks after it was announced — when the party submitted it for costing, arguing that the policy could be entirely funded using existing resources.
The Liberals unveiled a TasInsure shopfront and branded clothing ahead of the election. (ABC News: Morgan Timms)
Treasury was unable to cost the promise due to insufficient information, finding there was “limited detail on the structure, governance, legislative and financing requirements” that would apply to TasInsure.
It found that further policy and legislation development work would be needed to determine the likely cost.
“However, it is anticipated that the establishment of a new government-owned business, with a skills-based board, providing a range of insurance products in Tasmania, would incur additional costs,” the Treasury costing stated.
Shadow Treasurer Dean Winter said the documents showed Mr Rockliff had been acting like a “dodgy travelling insurance salesman”.
“There was no business case and no modelling. There will be no $250 per year saving for struggling families. It was all made up,” he said.
“Rising insurance costs are a serious issue affecting Tasmanians. They need serious solutions, not a premier who is hell-bent on lying to keep his job.”
Dean Winter says Mr Rockliff has been acting like a “dodgy travelling insurance salesman”. (ABC News: Maren Preuss)
Not in the budget
Thursday’s budget contained no mention of TasInsure, but in a Stateline interview, Treasurer Eric Abetz said the government wanted advice “from specialists in the field” about how best to implement it first.
“We want to go about this in a very responsible manner, and that is why we are getting specialist advice,” he said.
“Setting up an insurance company can’t be done overnight but it is something we are looking at.
“And interestingly, we are now getting interest from our fellow state governments … because they’re also concerned about insurance premiums.”
Mr Abetz said money for the scoping study, set to be conducted by Treasury, had been set aside in Thursday’s state budget.
Eric Abetz says money has been set aside for a scoping study. (ABC News: Luke Bowden)
It is not listed as a line item in the document, but Mr Abetz said it would be funded out of Treasury’s operating budget.
The government insisted TasInsure was necessary during the state election, but Mr Abetz was more equivocal when asked if that was still the case on Thursday.
“What we want to do is drive down prices and if those prices can be brought down without any government intervention, then I suppose that fits the solution that we were looking for,” he said.
“But at the end of the day, I doubt that that is going to happen without some government involvement.”
