Today the Government welcomes the release of the Northern Australia Insurance Premiums Taskforce Interim Report.
The Government recognises that many people in Northern Australia have experienced a substantial increase in insurance premiums in recent years. In many cases, these increases have been far in excess of those experienced in the rest of the country, largely due to the risk of damage from cyclones.
The Government established the Taskforce to explore the feasibility of options to reduce home, contents and strata insurance premiums in regions in Northern Australia experiencing insurance affordability concerns due to cyclone risks. These options include a mutual cyclone insurer, a cyclone reinsurance pool, and additional options raised during consultations.
The Interim Report furthers this consideration by providing a framework to assess the costs and benefits of each of these options. It also highlights the importance of taking action to reduce the risk of property damage from a cyclone.
The Interim Report takes into account extensive consultation that has already been undertaken by the Taskforce, including with consumer and business groups in Northern Australia and members of the insurance industry.
The Government thanks those who have already engaged with the Taskforce to provide important feedback in this process as well as the Taskforce Reference Panel for their work to date.
The Taskforce will provide its final report to the Government in November this year.
Feedback on the Interim Report can be provided until 14 September 2015. The Interim Report and further information from the Treasury website.