The Morrison-Joyce Government has again left residents of Northern Australia in the dark about how much they will save on their insurance premiums through a reinsurance pool.
The Morrison-Joyce Government has previously promised “measurable and significant premium reductions” through the reinsurance pool, but their exposure draft legislation fails to quantify the exact amount that home insurance premiums in the region will fall and how soon residents will benefit.
Stakeholders including the RACQ are now raising questions around cost and pricing, coverage and claims management, and calling for key answers from the Morrison-Joyce Government around the reinsurance pool.
The Townsville Chamber of Commerce has also voiced concern around the lack of detail provided for how the reinsurance pool will reduce the cost of insurance premiums and increase competition in the insurance market.
Residents want to hear now from the Prime Minister about how much they will save and when it will happen. Instead, Scott Morrison has earlier said he would rather “just see how that plays out” with the start of the reinsurance pool scheduled from 1 July 2022.
After eight long years in office, the Morrison-Joyce Government is asking for locals to trust them that action will only be taken after the next Federal election.
Northern Australia has had enough of Scott Morrison making big promises and then not delivering, whether it be the failed Northern Australia Infrastructure Facility and Emergency Response Fund. We can’t see that happen again with the reinsurance pool.
Labor will continue to examine the exposure draft legislation and work constructively with the Morrison-Joyce Government on a reinsurance pool to help ease the burden of home insurance costs in Northern Australia.
Labor is also calling for a comprehensive plan that includes mitigation, retrofitting houses and a suite of measures to properly address the problem in a region that is prone to cyclones and natural disasters.
That’s why last week we announced that an Albanese Labor Government will improve Australia’s disaster readiness by investing up to $200 million per year on disaster prevention and resilience.
Prevention projects including flood levees, sea walls, cyclone shelters and evacuation centres will assist with spiralling insurance premiums in disaster-prone regions, by reducing the risk of expensive damage to homes and businesses.
Australians are still being forced to pay too much for vital home insurance because of Scott Morrison’s inaction.
