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.

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.

Share this news item:

Insurance News

Clear

Australian Life Insurers Report Significant Profit Increase in June 2025 Quarter

26 Dec 2025: Paige Estritori

The Australian life insurance sector has reported a substantial after-tax profit of $360 million for the June 2025 quarter, marking a significant increase from the $116 million recorded in the same period the previous year. This impressive growth is primarily attributed to a sharp rise in investment income and improved underwriting performance across key product lines. - read more

Rising Mental Health Claims Impact Australian Life Insurance Industry

26 Dec 2025: Paige Estritori

The Australian life insurance industry is witnessing a significant surge in mental health-related claims, reflecting broader societal challenges and increasing awareness of mental health issues. AIA Australia, a leading life insurer, has reported that mental health claims now account for 23% of its total claims, up from 15% in 2014. This trend underscores the growing prevalence of mental health conditions and their impact on individuals' ability to work and maintain financial stability. - read more

Decline in Australian Life and Income Protection Insurance Premiums

26 Dec 2025: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

Club Marine Marks 65 Years of Leadership in Australian Boating Insurance

26 Dec 2025: Paige Estritori

Club Marine, Australia's largest recreational boat insurer, is celebrating its 65th anniversary in 2024. Since its founding in 1959 as Marine Hull & Liability, the company has grown from a small operation in Victoria to a nationwide provider of insurance services for the country's boating community. - read more

IAG's Strategic Moves Propel Profit Forecast Upward

26 Dec 2025: Paige Estritori

Insurance Australia Group (IAG) has recently announced an optimistic upgrade to its financial guidance for the fiscal year 2026, projecting a 10% increase in gross written premium (GWP) and an insurance profit ranging between $1.55 billion and $1.75 billion. This positive outlook is largely attributed to strategic acquisitions and a focus on digital transformation. - read more

Click for more Insurance News