Cyclone reinsurance pool legislation heads for Parliament

The design of the national reinsurance pool for cyclone and related flood damage has been finalised after consultations on the draft legislation.

The Commonwealth-backed reinsurance pool was announced last May to help reduce significant rates of non-insurance rates across North Queensland, the Northern Territory, and the top end of Western Australia.

The Morrison Government says the pool will reduce insurance premiums for eligible households, strata, and small business insurance policies by up to $2.9 billion over 10 years, with homeowners in affected areas across northern Australia potentially enjoying reductions of up to 46 percent.

Savings for strata property premiums could be as much as 58 percent, while SMEs could see reductions in their premiums of 34 percent.

The Government says it intends to introduce the legislation for the reinsurance pool during the February sittings of Parliament, with the pool on track for the scheduled 1 July start date.

The Local Government Association of Queensland (LGAQ) has advocated strongly for a reinsurance pool, and described last year’s announcement as “a welcome game-changer for councils and communities”.