The Tasmanian Government has released a discussion paper and preliminary draft legislation on its proposed state insurer, TasInsure. Here we pull 10 key learnings from the documents. 

It’s still happening 

The phrase “TasInsure will” appears in the discussion document 10 times, and there’s no indication that the Liberal government has been talked out of its flagship election pledge – despite significant concerns from opposition politicians, economists, and insurance industry experts.  

“TasInsure will address the sharply rising insurance premiums in Tasmania by providing a Tasmanian-owned alternative that reinvests financial returns to support long-term affordability for Tasmanian customers,” the discussion document says. 

What’s it trying to achieve? 

Premier Jeremy Rockliff believes Tasmanians are paying too much for their insurance, with many priced out of cover. 

“TasInsure will seek to deliver affordable insurance products for Tasmanian households, small businesses, community groups, and other organisations requiring regional and event insurance,” the discussion document says. 

“It will do so in a way that is disconnected from the risk profiles of other jurisdictions.” 

Mr Rockliff has said that TasInsure could save Tasmanian households $250 a year, and small businesses “thousands” per year.  

These figures don’t appear in the discussion document however, and there’s no indication as to how they’ve been calculated. 

The draft legislation says the principal objectives of TasInsure are “to provide general insurance services; to administer any compulsory or government-backed schemes conferred on it under this Act or by any other law; to support disaster resilience and recovery through insurance and risk management; and to carry out such other functions as are conferred on it”. 

What will it cover? 

The document says products will include “home and contents insurance; small business insurance; community groups and event insurance (including public liability insurance); regional insurance (including potentially farms or regional dwelling risks) and workers’ compensation insurance”. 

It says coverage will be “limited to include Tasmanian businesses and Tasmanian families including Tasmanian households, SMEs, community groups, event organisers, and regional and remote areas where cover is currently limited or premiums exceptionally high”. 

How will it be funded? 

The discussion document says TasInsure “will require sufficient capital support”, and the government intends to “leverage” the model of its CTP provider, the Motor Accidents Insurance Board. 

The MAIB’s last annual report shows that it made a profit of $115.9 million in 2024/25, up from $95.7 million the previous financial year. It will pay a dividend to government of $47.3 million. 

The discussion document says “appropriate reinsurance arrangements may need to be proposed and formalised” and “pooling and diversification measures will need to be considered”. 

Who will run it? 

The discussion document says TasInsure “will be owned by the Tasmanian government on behalf of the  Tasmanian people”. 

And the draft legislation says the members of the company will be the Minister and the Treasurer. 

It says TasInsure will have a board of between three and seven people “who have the experience and expertise necessary to enable the Company to achieve its objectives”. 

The members of the company are to appoint the board “in accordance with the constitution”. 

Feedback is welcome 

While the government appears determined to push on with TasInsure, the discussion document does call for other views. 

It will work with a consultant and broader feedback is welcome. It also says the draft legislation will be refined following this process. 

“The Tasmanian government is seeking advice from a highly specialised consultant to advise on TasInsure’s development, governance, and operating model,” the discussion document says. 

“This work will involve an analysis of different policy and whole-of-system options, commercial operating arrangements, the degree of integration and separation from the MAIB, and input in relation to implementation planning and timelines. 

“The Tasmanian government is also seeking advice from stakeholders and the broader community in relation to the establishment of TasInsure to ensure the proposed model and framework reflects the needs and expectations of the community.” 

Mitigation and risk management is recognised 

The discussion document appears to recognise that there are some underlying issues that have caused premiums to rise – and that creating a government-owned insurer may not be the sole solution. 

“Industry groups, SMEs and other similar organisations and bodies may be consulted to provide input in relation to insurance products and requirements as well as risk-mitigation measures and opportunities,” the document says. 

It also says the consultation will consider “other proposals, programs or policies that may deliver improved insurance outcomes for Tasmanians (including resilience building opportunities)”. 

Could it become a cash cow for the government? 

That seems unlikely – because the government has pledged that any profits will be ploughed back into TasInsure. 

“Financial returns are expected to be reinvested into TasInsure to keep premiums low, rather than being distributed externally,” the discussion document says. 

What happens next? 

Feedback on the discussion paper and draft legislation will close on January 9. 

The government will then “prepare and release an updated version of the bill for targeted consultation with stakeholders and the broader community”. 

There’s no clear timeline beyond that, but the discussion document says TasInsure must “accord to realistic and achievable timeframes for implementation”. 

“The implementation model may require separate phases: including establishment, product launches, scaling up, capital strengthening and performance monitoring,” it says. 

“A phased approach for the roll-out for policies may be required – with organisations or areas where underinsurance or uninsurance presents an unacceptable risk being targeted in the first instance.” 

Where can I learn more? 

The full discussion document and preliminary draft legislation are available online.