4 years ago
FINANCE MINISTER’S RESPONSE TO INSURANCE CRISIS FALLS SHORT
MATT THISTLETHWAITE MP
Finance Minister Mathias Cormann’s limp response to the northern Australia insurance crisis will bring no relief to northern Queenslanders unable to access affordable insurance ahead of the upcoming wet season.
Mr Cormann has told the Townsville Bulletin he is“assessing” the situation and “talking to stakeholders” despite being in receipt of a damning Australian Competition and Consumer Commission report into the northern Australian insurance industry.
Mr Cormann said he will “continue work directly with the insurance companies”.
What about the consumers being ripped off by the unfair practices clearly identified by the ACCC?
The ACCC’s recent Northern Australia Insurance Inquiryreport shows northern Queenslanders are paying double the premiums of people living in southern Australia.
Labor’s Shadow Assistant Financial Services Minister,Matt Thistlethwaite, and Queensland Senator, Nita Green, held a community forum into the issue in Townsville on Tuesday.
Attendees told of their despair at having their premiums rise up to 500 per cent despite being loyal customers of the insurers for more than 40 years. Others told how they’ve reluctantly exposed themselves to massively increased excess payments in an effort to reduce skyrocketing premiums.
The ACCC report calls for a raft of measures to make buying insurance in northern Australia cheaper, more transparent and less complex.
Mr Thistlethwaite said the Government’s lack of action is starting to resemble its response to the Banking Royal Commission.
“The Government is dragging its heels in terms of implementing sensible reforms recommended by the ACCC,” Mr Thistlethwaite said.
“They appear just as reluctant to stand up to the multinational insurance industry as they did the banks.”
Senator Green is calling on local Liberal National MP’s to demand action.
“Members of the Government were describing the insurance situation in northern Australia as being in “crisis” back in 2015 and yet they still have not acted,” Senator Green said.
“How long must people wait to get a fair go?
“The Government knows what the issues are and they should be getting on with implementing the ACCC’s recommendations.”
The ACCC found:
• Insurance premiums rose by 130 per cent in northern Australia over the past decade, compared to just over 50 per cent in the rest of Australia
• 82 per cent of those surveyed experienced some level of underinsurance
• Insurers increasing premiums to deliberately lose customers in certain regions
• NQ insurance premiums are almost double the national average
Many of the recommendations could be easily implemented including establishing a national home insurance comparison website, standardising definitions of prescribed events and applying unfair contract protections to insurance.
Mr Cormann has told the Townsville Bulletin he is“assessing” the situation and “talking to stakeholders” despite being in receipt of a damning Australian Competition and Consumer Commission report into the northern Australian insurance industry.
Mr Cormann said he will “continue work directly with the insurance companies”.
What about the consumers being ripped off by the unfair practices clearly identified by the ACCC?
The ACCC’s recent Northern Australia Insurance Inquiryreport shows northern Queenslanders are paying double the premiums of people living in southern Australia.
Labor’s Shadow Assistant Financial Services Minister,Matt Thistlethwaite, and Queensland Senator, Nita Green, held a community forum into the issue in Townsville on Tuesday.
Attendees told of their despair at having their premiums rise up to 500 per cent despite being loyal customers of the insurers for more than 40 years. Others told how they’ve reluctantly exposed themselves to massively increased excess payments in an effort to reduce skyrocketing premiums.
The ACCC report calls for a raft of measures to make buying insurance in northern Australia cheaper, more transparent and less complex.
Mr Thistlethwaite said the Government’s lack of action is starting to resemble its response to the Banking Royal Commission.
“The Government is dragging its heels in terms of implementing sensible reforms recommended by the ACCC,” Mr Thistlethwaite said.
“They appear just as reluctant to stand up to the multinational insurance industry as they did the banks.”
Senator Green is calling on local Liberal National MP’s to demand action.
“Members of the Government were describing the insurance situation in northern Australia as being in “crisis” back in 2015 and yet they still have not acted,” Senator Green said.
“How long must people wait to get a fair go?
“The Government knows what the issues are and they should be getting on with implementing the ACCC’s recommendations.”
The ACCC found:
• Insurance premiums rose by 130 per cent in northern Australia over the past decade, compared to just over 50 per cent in the rest of Australia
• 82 per cent of those surveyed experienced some level of underinsurance
• Insurers increasing premiums to deliberately lose customers in certain regions
• NQ insurance premiums are almost double the national average
Many of the recommendations could be easily implemented including establishing a national home insurance comparison website, standardising definitions of prescribed events and applying unfair contract protections to insurance.