Newsroom

November 27, 2024

KAP Federal Member for Kennedy, Bob Katter, has called on the Australian Government to urgently amend the Cyclone Reinsurance Pool legislation to make insurance premiums in the north affordable and on par with the rest of the country.

In the last sitting fortnight of the year, Mr Katter fronted Parliament to address the escalating issue of sky-high insurance premiums in the region, which are placing an unfair financial burden on North Queensland residents. He also raised concerns over the failure of the Cyclone Reinsurance Pool, highlighting that it has not adequately addressed the needs of homeowners, with arguably 50 per cent of North Queensland currently uninsured or underinsured.

"The government must act now to fix the Cyclone Reinsurance Pool before another disaster strikes the north," Katter said.

"The premiums for insurance in Northern Australia are significantly higher than the national average, with the exception of Sure and Allianz. This lack of competition is leaving homeowners with limited options and unfairly high costs."

The attached case studies are a small example of the many complaints about unaffordable insurance premiums that have been brought to Mr Katter's attention.

"All insurers should be providing affordable and fair coverage for residents in cyclone-prone areas. To achieve this the Cyclone Reinsurance Pool must be fixed."

In his speech, Katter criticised the current government's handling of the issue, saying that free-market advocates often fail to consider the unique challenges faced by Northern Australia.

"Why should we be treated differently? Why should we be forced to run industries like cane and cattle farming at margins no other farmers in the world are asked to endure?" Katter questioned.

"Cyclones are a natural part of life in the region, and the government must step in to ensure that insurance premiums are fair and equitable for those who live in cyclone-prone areas."

Together with Bradley Health from Sure Insurance, Mr Katter attended an urgent meeting with the Minister for Finance, Steven Jones, to discuss the issue earlier this week.

"There was a mutual recognition that further work needed to be undertaken in areas that are vulnerable to cyclones and flooding," Mr Katter said.

"I made the Minister aware that we need to decrease the rates of those uninsured and underinsured. We can only do that if we bring premiums down to an affordable level.

"A key issue discussed was extending coverage of the Reinsurance Pool beyond the current 48-hour period to ensure that post-cyclone flooding impacts are covered."

Photo: December 2023 – Bob Katter, Shane Knuth Member for Hill, and Renee McLeod in Renee’s front yard after flooding from ex-Tropical Cyclone Jasper.

Cyclone Reinsurance_Key Points and Constituent Case Studies

Mr KATTER (Kennedy) (16:45): I move:

That this House:

(1) calls on the Government to urgently amend the Cyclone Reinsurance Pool to ensure that all Australian insurers provide residents in cyclone-prone areas with options for house insurance premiums that are comparable to those paid by the rest of the country;

(2) notes that:

(a) with the exception of Sure and Allianz, insurance premiums in Northern Australia are significantly higher than the national average, placing an unfair lack of choice and financial burden on northern Australian homeowners;

(b) the Cyclone Reinsurance Pool has failed and needs further and urgent negotiation; and

(c) 25 per cent of North Queensland is currently not insured; and

(3) calls on the Government to:

(a) fix the Cyclone Reinsurance Pool before another disaster strikes in the north; and

(b) ensure that:

(i) all insurers offer affordable and fair insurance coverage charges in line with the rest of Australia; and

(ii) specific insurers are not over-exposed.