Labor has again backed the establishment of a reinsurance pool for Northern Australia and pushed the Morrison-Joyce Government to help fix the spiralling cost of home insurance premiums that has occurred on their watch.
The Government has promised the reinsurance pool will start operating on 1 July 2022, but key stakeholders continue to join Labor in calling for the release of vital information that will help to underpin the success of the scheme.
The Insurance Council of Australia has again urged the Morrison-Joyce Government to release the pricing schedule for the reinsurance pool to give the sector time to price reinsurance costs.
‘The Pool is scheduled to commence in just three months, so it’s vitally important that insurers and their customers are able to understand how and to what extent this will impact on premiums.’ Insurance Council of Australia
Labor has been calling on the Morrison-Joyce Government to release the details of the reinsurance pool and the modelling upon which its claims of premium reductions are based. The Government refuses to release the modelling.
Labor wants to see relief from spiralling insurance premiums flow through to communities in Northern Australia as quickly as possible.
However, the establishment of a reinsurance pool on its own will not be enough to significantly reduce insurance premiums in the region.
This approach must be accompanied by other policies which reduce the risk of damage to property in the future. It should be linked to better planning rules, investment in mitigation infrastructure, retro fitting buildings and building for resilience in the future.
Labor has announced a Disaster Ready Fund which will allocate up to $200 million per annum for disaster readiness and mitigation measures.
A Labor government will ensure the reinsurance pool is one of a suite of measures to reduce the risk of loss to life and property associated with increasing risk of severe weather including cyclones and flooding.
