Call for Equitable Cyclone Insurance Subsidies Grows
Call for Equitable Cyclone Insurance Subsidies Grows
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A notable Australian consumer group insists for a revision of the cyclone insurance framework to achieve better parity among affected regions.
Before its scheduled review, the proposed recalibration looks to distribute fiscal pressures more evenly among Australians, possibly extending the burden of cost to regions historically less affected by cyclones, such as Sydney.
While the pool's review is set for the following year, Australia Consumers Insurance Lobby's (ACIL) head, Tyrone Shandiman, contends that key improvements, especially in pricing models, could be instated sooner under guidance from Assistant Treasurer Stephen Jones. ACIL stresses the necessity of advancing its efficacy prior to the formal evaluation, citing a need for a fairer spread of premium responsibilities.
Recent hearings by the parliamentary Joint Select Committee on Northern Australia, which picked up once more in Brisbane, have rekindled the debate on the government-backed insurance scheme, particularly as the risk season winds down and in the wake of Cyclone Jasper's impact.
Different concerns surfaced during the hearings, with viewpoints diverging on the coverage of flooding by the pool and potential merits of an alternative framework. "Our stance is to perfect the system for cyclones first before tackling flood coverage," remarked Mr. Shandiman. He emphasized the present cyclone insurance model's deficiencies and the beneficial impact of sensible re-modelling.
Another point of contention arose around the coverage for large-scale property developments. While strata property policies witnessed appreciable declines in premiums with the current pool, insurers and consumer advocates alike discuss the struggle for properties with values exceeding $20 million, still facing disproportionately high premiums compared to the nation's average.
To enhance the scope and function of the pool, ACIL released a report last year advocating several changes. The proposals included broadening the time coverage post-cyclone to seven days, increasing regional participation for funding, and even suggesting the inclusion of marine insurance.
Insurers provided differing testimonies before the parliamentary committee, particularly around the contentious 48-hour claim period following a cyclone and whether the scheme should encapsulate flood damages. This divergence of perspectives underscores the complexity of achieving a balanced solution that would appease policyholders while maintaining the financial viability of the insurance pool.
Published:Wednesday, 1st May 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Strata communities are at the forefront of Australia's resilience battle, facing escalating costs, declining coverage, and prolonged recovery periods following disasters. Strata Community Association Australasia (SCA) has expressed strong support for the Insurance Council of Australia's (ICA) recent call for coordinated, long-term resilience reforms to protect communities from these challenges. - read more
The Australian insurance industry is undergoing a significant transformation, with companies increasingly integrating artificial intelligence (AI) into their operations. This shift aims to enhance efficiency, improve customer service, and strengthen risk management practices in a rapidly evolving market. - read more
Climate change is increasingly impacting the Australian insurance industry, presenting significant financial risks as the frequency and severity of natural disasters escalate. Insurers are grappling with the challenge of adapting to this new reality while maintaining financial stability and providing affordable coverage to consumers. - read more
Budget Direct has been honoured with the inaugural 'Insurer of the Year' title at the 2026 Finder Provider of the Year Awards, marking a significant achievement in the Australian insurance sector. This accolade underscores the company's commitment to delivering exceptional value and service to its customers. - read more
Recent findings from the PwC Insurance Banana Skins Survey reveal a concerning trend: Australian insurers are increasingly falling behind their global counterparts in preparedness for emerging risks, particularly those associated with artificial intelligence (AI) and cyber threats. The survey indicates that local insurers are now 6.6% less prepared than their international peers, marking the widest gap observed in recent years. - read more
If you are running a farm, you already know that it is more than just a business; it's a way of life. Your farm is a culmination of hard work, valuable resources, and significant financial investments. - read more
Welcome to our discussion on farm insurance, a vital aspect for anyone involved in agriculture. Whether you run a smallholding or manage extensive agricultural operations, understanding your insurance coverage can make all the difference in safeguarding your livelihood. - read more
Welcome to our discussion on farm insurance, a crucial subject for every Australian farmer. Whether you're seasoned in agricultural ventures or just starting out, the world of insurance can often seem daunting and complex. - read more
Managing a farm involves juggling many uncertainties and potential risks. Risk management in farming refers to the process of identifying, assessing, and prioritising risks associated with agricultural activities. Effective risk management ensures that farmers can handle obstacles and continue their operations smoothly. - read more
For Australian farmers, every day presents a complex web of activities that demand not only their physical toil but also a keen attention towards safety. On-farm safety is paramount and is the shield that guards the well-being of both workers and operations in Australia's diverse agricultural landscape. It's not just about the immediate repercussions of accidents, but also their long-term impact on a farm's viability. - read more
Knowledgebase
Subrogation: An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.
