A body representing Queensland’s 77 councils is urging the Federal Government to establish a national reinsurance pool to help reduce the cost of insurance premiums in North Queensland and across northern Australia.
The Local Government Association of Queensland has called for this measure in its Federal Budget submission to the Commonwealth, in support of member councils.
It suggests that a pool could be modelled on the existing terrorism reinsurance scheme that Australia employs.
LGAQ President and Sunshine Coast Council Mayor Mark Jamieson noted that insurance premiums had risen by up to 178% in Northern Australian over the last decade, compared to 52 per cent elsewhere.
Additionally, more than 62,000 properties in North Queensland are currently uninsured, with more than 95% of those uninsured property owners citing cost as a reason, the Australian Competition and Consumer Commission found.
“This is just simply unacceptable in a state as highly vulnerable to natural disasters as Queensland,” said Jamieson.
“Our member councils want a reinsurance pool established to help reduce those costs so their communities are not unfairly burdened, and we support their call.”
“We urge the Federal Government to work with the councils as leaders of their communities to ensure an effective scheme is implemented before the next disaster season,” Jamieson continued.
“The insurance market in Northern Australia has clearly failed and it’s time for a national reinsurance pool to help reduce the cost of insurance premiums.”
