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.
CHU, Australia's leading strata insurance underwriting agency, has significantly increased its capacity to underwrite individual strata risks, now offering coverage up to $690 million. This substantial rise from the previous limit of $300 million is a strategic response to the evolving landscape of strata developments, which are becoming larger and more complex. - read more
The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, citing a direct link between inadequate governance and escalating insurance premiums for residents. With approximately one in five Victorians living in strata-titled properties, the need for effective management and oversight has become increasingly critical. - read more
The Australian construction insurance market has experienced a notable shift in 2025, with premiums decreasing across various lines due to intensified competition among insurers. According to Marsh's Construction Insurance Market Update 2025, the first half of the year saw average premium reductions ranging from 5% to 15%, marking a significant departure from the upward trend observed in 2024. - read more
Australia's construction sector continues to grapple with elevated cost pressures, prompting builders to reassess their insurance and risk management strategies. Gallagher reports that overall construction costs have increased by over 30%, influenced by supply chain disruptions, inflation, and labour shortages. - read more
The South Australian Government has taken decisive action to bolster homeowner protection in response to a surge in builder insolvencies. Effective from 1 October 2025, the maximum insurance payout for homeowners will increase from $150,000 to $250,000. This measure aims to provide greater financial security to homeowners left with incomplete or defective properties due to builder failures. - read more
As a farm owner, your livelihood depends not only on the hard work you put in but also on the protection you have in place against unforeseen events. Farm insurance is crucial in safeguarding your investments, ensuring that your operations can continue smoothly even when faced with unexpected challenges. - read more
Public liability insurance is a critical component for the agricultural sector, serving as a protective measure for livestock and crop producers against the legal liabilities they face in their daily operations. This type of insurance is designed to cover the costs associated with third-party injuries or property damage that occur on farm premises or as a direct result of farming activities. - read more
Risk mitigation is a strategy used to prepare for and lessen the effects of potential risks faced by rural farmers. It involves identifying potential threats and taking proactive steps to minimize their impact. - 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
Welcome to our comprehensive guide on comparing insurance options for mixed farming. As a rural farm owner, you face unique challenges that require specialized insurance coverage to protect your livelihood. - read more
Knowledgebase
Actuary: A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.
