2 years ago
NORTHERN AUSTRALIA INSURANCE CRISIS
MATT THISTLETHWAITE MP
The Morrison Government’s failure to fix the insurance crisis in Northern Australia has gone from bad to worse with confirmation the so-called $10 billion guarantee for a planned reinsurance pool has not progressed beyond “intentions” and “hope”.
Confirmation in Senate Estimates yesterday of the slow rollout of the reinsurance pool shows the Morrison Government has been quick to do a photo-op in Northern Australia, but once again has not followed up with any immediate help for residents in the region.
Despite promises of a $10 billion reinsurance pool for cyclones and related flood damage to help reduce soaring insurance premiums, the Morrison Government has only allocated $2.4 million to establish a taskforce to begin consultation on an “intended” reinsurance pool which will not start operation until at least 1 July 2022.
That means residents of Northern Australia could be waiting even longer before they receive any relief from the skyrocketing insurance premiums.
After eight long years in office, the Morrison Government is now asking for locals to wait until after the next Federal election before they will even attempt to address the market failure that has led to the soaring insurance premiums in the region.
The Morrison Government has said it “hopes” the Northern Australia reinsurance pool could reduce premiums by more than $1.5 billion for households, strata and small businesses north of the Tropic of Capricorn over 10 years, but has failed to do any detailed policy work during its time in office.
The reinsurance pool will be designed to be cost-neutral to the Federal Government over time, based on the predicted cost and frequency of cyclone events, but with little detail yet to be provided on how this will be achieved.
While doing something about a reinsurance pool is one approach, 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.
The Morrison Government has made yet another announcement when it comes to insurance in Northern Australia, but again has failed to deliver a comprehensive plan to fix the insurance crisis.
Confirmation in Senate Estimates yesterday of the slow rollout of the reinsurance pool shows the Morrison Government has been quick to do a photo-op in Northern Australia, but once again has not followed up with any immediate help for residents in the region.
Despite promises of a $10 billion reinsurance pool for cyclones and related flood damage to help reduce soaring insurance premiums, the Morrison Government has only allocated $2.4 million to establish a taskforce to begin consultation on an “intended” reinsurance pool which will not start operation until at least 1 July 2022.
That means residents of Northern Australia could be waiting even longer before they receive any relief from the skyrocketing insurance premiums.
After eight long years in office, the Morrison Government is now asking for locals to wait until after the next Federal election before they will even attempt to address the market failure that has led to the soaring insurance premiums in the region.
The Morrison Government has said it “hopes” the Northern Australia reinsurance pool could reduce premiums by more than $1.5 billion for households, strata and small businesses north of the Tropic of Capricorn over 10 years, but has failed to do any detailed policy work during its time in office.
The reinsurance pool will be designed to be cost-neutral to the Federal Government over time, based on the predicted cost and frequency of cyclone events, but with little detail yet to be provided on how this will be achieved.
While doing something about a reinsurance pool is one approach, 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.
The Morrison Government has made yet another announcement when it comes to insurance in Northern Australia, but again has failed to deliver a comprehensive plan to fix the insurance crisis.