Insurance Profits Soar While Australians Struggle

During Senate Estimates in October, I raised an issue that’s hurting Australians — insurance costs. Health Insurance: Private hospitals across Australia are under extreme stress because of funding shortfalls from insurers, yet those same insurers are posting record profits — over $5 billion. Why are hospitals being starved while insurers rake in billions? The ACCC Chair acknowledged the challenges but said they haven’t actively investigated this. She noted that private hospitals face rising costs and tough negotiations with a small number of insurers — a clear sign of limited competition. Home and Car Insurance: On paper, there are 11 home insurers, many just brands under the same company. Suncorp owns AAMI and Apia; CGU and NRMA are both IAG. That means only eight real players. Car insurance is even worse — 12 brands, yet only six actual companies. When I asked the ACCC if this lack of competition worried them, they expressed their concern and said that they’re reviewing IAG’s proposed acquisition of RACWA because it could remove an important competitor. Australians are furious about insurance premiums skyrocketing in areas that have never flooded, and never will, based on speculative climate change claims. Insurers argue that future flooding risk justifies massive hikes, even though extreme weather trends are flat. I asked if the ACCC has looked at how insurers justify these increases in a low-competition market. The answer? No. All five publicly listed insurance companies share the same major shareholders — BlackRock, Vanguard, State Street and Norges Bank. These global asset managers hold significant stakes across insurers and banks. I asked if the ACCC considers the impact of these interlocked holdings. They said they’re aware of the investors yet will only act if they see evidence of coordinated conduct. — Senate Estimates | October 2025 Transcript: https://www.malcolmrobertsqld.com.au/insurance-profits-soar-while-australians-struggle/