ICA calls for structural changes to compensation scheme
Key takeaways
- ICA calls for structural changes to compensation scheme.
- The ICA s position, set out in a submission to Treasury s options paper on CSLR sustainability, is that reforms must target the underlying drivers of costs rather than focus solely on new revenue mechanisms.
- Projected costs for 2026-27 have been put at more than A$137m ($98m) by the CSLR operator, with financial advice accounting for roughly A$127m of that total.
ICA calls for structural changes to compensation scheme. The council further recommended capping CSLR-eligible compensation at actual capital loss · Life Insurance International · Photo Smoothies / Shutterstock.com Shubhendu Vimal Tue, May 26, 2026 at 5:25 PM GMT+7 2 min read The Insurance Council of Australia has urged a structural overhaul of the Compensation Scheme of Last Resort (CSLR), cautioning that funding changes alone cannot make the scheme sustainable.
The ICA s position, set out in a submission to Treasury s options paper on CSLR sustainability, is that reforms must target the underlying drivers of costs rather than focus solely on new revenue mechanisms.
Projected costs for 2026-27 have been put at more than A$137m ($98m) by the CSLR operator, with financial advice accounting for roughly A$127m of that total.