Income Insurance Online :: News
SHARE

Share this news item!

ICA Advocates for Overhaul of Civil Liability Laws to Curb Rising Insurance Premiums

Addressing the Impact of Outdated Legislation on Business Insurance Costs

ICA Advocates for Overhaul of Civil Liability Laws to Curb Rising Insurance Premiums?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia (ICA) has recently released a white paper highlighting the urgent need for reforms to state and territory civil liability laws, which have remained largely unchanged for nearly 25 years.
These outdated laws are contributing to significant increases in public liability insurance premiums, affecting a wide range of businesses across the nation.

According to the ICA, the current legal framework has not kept pace with societal changes and the evolving nature of risks faced by businesses today. This stagnation has led to a surge in claims and, consequently, higher insurance costs. The white paper emphasizes that without legislative intervention, these trends are likely to continue, placing additional financial strain on small and medium-sized enterprises (SMEs) and non-profit organizations.

One of the key issues identified is the rise in claims related to psychological injuries and third-party nervous shock. The ICA notes that the broad scope for such claims has expanded liability exposure for businesses, leading to increased premiums. The white paper suggests that reforms should include clearer definitions and limitations on these types of claims to provide more certainty for insurers and insured parties alike.

Furthermore, the ICA points out that the current laws do not adequately address the complexities of modern business operations, particularly in sectors like live entertainment and recreational activities. For instance, live music venues and festival organizers have reported substantial hikes in public liability insurance premiums, with some experiencing increases from $10,000 to over $120,000. This escalation threatens the viability of these businesses and the cultural events they host.

To mitigate these challenges, the ICA recommends a comprehensive review of civil liability laws, focusing on:

  • Establishing clearer guidelines for psychological injury claims to prevent excessive litigation.
  • Implementing proportionate liability provisions to ensure that businesses are not unduly burdened by claims beyond their control.
  • Updating definitions of 'dangerous activities' to reflect current societal norms and technological advancements.
  • Introducing measures to curb 'claim farming' practices that contribute to inflated claims and legal costs.

The ICA also advocates for a collaborative approach involving federal and state governments, insurers, and industry stakeholders to develop and implement these reforms. By modernizing the legal framework, the aim is to create a more balanced system that protects the rights of claimants while ensuring the sustainability and affordability of public liability insurance for businesses.

In conclusion, the ICA's call for reform underscores the pressing need to address the factors driving up public liability insurance premiums. By updating civil liability laws to reflect contemporary realities, Australia can foster a more equitable and sustainable insurance environment that supports the diverse needs of its business community.

Published:Tuesday, 24th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Homeowners Confront Steep Rise in Insurance Premiums
Australian Homeowners Confront Steep Rise in Insurance Premiums
24 Feb 2026: Paige Estritori
Over the past five years, Australian homeowners have experienced a significant 51% increase in home insurance premiums. This surge has placed a considerable financial burden on property owners nationwide, with Darwin residents facing the highest costs. - read more
Potential Relief for Australian Policyholders Amid Global Insurance Market Downturn
Potential Relief for Australian Policyholders Amid Global Insurance Market Downturn
24 Feb 2026: Paige Estritori
Recent developments in the global financial markets have sparked discussions about potential benefits for Australian insurance policyholders. A significant sell-off in the insurance sector on Wall Street has led analysts to speculate that Australian insurance premiums could see a reduction in the near future. - read more
Climate Change Escalates Home Insurance Premiums Across Australia
Climate Change Escalates Home Insurance Premiums Across Australia
24 Feb 2026: Paige Estritori
As the effects of climate change become increasingly evident, Australian homeowners are facing a surge in home insurance premiums. The rising frequency and severity of natural disasters, such as floods, bushfires, and storms, have significantly impacted the insurance landscape, leading to higher costs for property owners. - read more
ICA Advocates for Overhaul of Civil Liability Laws to Curb Rising Insurance Premiums
ICA Advocates for Overhaul of Civil Liability Laws to Curb Rising Insurance Premiums
24 Feb 2026: Paige Estritori
The Insurance Council of Australia (ICA) has recently released a white paper highlighting the urgent need for reforms to state and territory civil liability laws, which have remained largely unchanged for nearly 25 years. These outdated laws are contributing to significant increases in public liability insurance premiums, affecting a wide range of businesses across the nation. - read more
Liberty Adds 'Safe Harbour' Insolvency Cover to D&O Policies
Liberty Adds 'Safe Harbour' Insolvency Cover to D&O Policies
24 Feb 2026: Paige Estritori
Liberty Specialty Markets has announced the addition of a company insolvency extension to its Australian directors' and officers' (D&O) liability policies. This innovative feature is designed to support companies and their directors by covering reasonable costs incurred when engaging approved advisers under the 'safe harbour' insolvency regime. - read more


Life Insurance Articles

Income Safety Net: How to Choose the Right Income Protection for Your Lifestyle
Income Safety Net: How to Choose the Right Income Protection for Your Lifestyle
In the face of life's unpredictable twists and turns, few things are as disconcerting as the possibility of suddenly losing your ability to earn an income due to illness. Such events are often unexpected and can have significant financial repercussions that interrupt not only your flow of daily life but also compromise your future plans. - read more
Income Protection vs. Life Insurance: What's Best for You?
Income Protection vs. Life Insurance: What's Best for You?
Financial protection is an essential aspect of sound financial planning. It ensures that you and your family are safeguarded against unexpected events that could lead to financial hardship. Two common types of financial protection are income protection insurance and life insurance. - read more
Deciphering Your Policy: A Beginner's Guide to Insurance Terminology
Deciphering Your Policy: A Beginner's Guide to Insurance Terminology
Welcome to the world of insurance – a domain where words like 'deductible' and 'premium' can significantly impact your financial protection and peace of mind. As a beginner, grasping the basics of insurance terminology is the first step towards making informed decisions about the policies that safeguard your assets and future. In this guide, we will embark on a journey through the language of insurance, which can often seem as complex as the policies themselves. - read more
How to Avoid Common Mistakes When Filing an Insurance Claim
How to Avoid Common Mistakes When Filing an Insurance Claim
Filing an insurance claim in Australia can be a daunting process, especially if you are not familiar with the necessary steps and requirements. Claiming insurance is crucial when you need financial support, whether due to a natural disaster, accident, or another unexpected event. - read more
How to Compare Income Protection Insurance for Self-Employed Australians
How to Compare Income Protection Insurance for Self-Employed Australians
For self-employed Australians, the financial stability provided by consistent income is the backbone of both personal and business success. Unlike traditional employees, who might have access to sick leave or employer-sponsored disability benefits, self-employed individuals are solely responsible for their financial security in the event of illness or injury. This is where income protection insurance steps in as a crucial safeguard. - read more


Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Policyholder:
The individual or entity who owns the insurance policy.