Reinsurance pool to cover cyclone and related flood damage in Northern Australia
The Federal Governments has announced a $10 billion reinsurance pool to underwrite insurance cover for cyclone and cyclone-related flood for privately-owned homes, strata corporations and small businesses, and a $40 million investment in making older strata buildings more resilient to extreme weather events, will be established to offer northern Australians more affordable and accessible home and business insurance.
The reinsurance pool would cover cyclone and related flood damage in northern Australia from 1 July 2022, and would be backed by a $10 billion government guarantee, reducing insurance premiums across Northern Australia by over $1.5 billion for households, strata and small businesses over 10 years.
More than 500,000 residential, strata and small business property insurance policies in Northern Australia are expected to be eligible to be covered by the reinsurance pool.
RiskCorp Insurance Brokers have been calling for this scale of investment for over 10 years, and it’s pleasing to see that finally we have some action from the Federal Government. We look forward to seeing the details of these projects in the Federal Budget next week. We must continue lobbying state governments in the elimination of State insurance stamp duties and levies and improving standards in building codes and land planning decisions.
If you would like to chat to one of our Brokers to see how these changes may impact you or your business in the North West, call our office on 08 6381 9510 or email firstname.lastname@example.org and one of our friendly staff will get in touch.