How will Comcover keep the cost of insurance down?
The history of public and private sector funds similar to Comcover shows that significant savings are achieved over time. This will be possible with Comcover because the Australian Government is pooling large groups of risks. There are less infrastructure costs (commissions, capital, overheads etc), less need for the Australian Government as a whole to buy external insurance, and benefits from economies of scale in dealing with providers on a whole-of-government basis. Comcover provides more stable premiums that, over time are lower than the long-term cost of commercial insurance premiums.
