Some Savings but Reinsurance Pool Delays Still Hurting
Herbert MP Phillip Thompson says the Albanese Labor Government is dragging the chain when it comes to providing relief on insurance premiums for North Queenslanders.
Mr Thompson said while some people were starting to find better deals for their insurance – particularly homeowners with detached houses – many locals were still being stung with significant premium increases.
Despite the Government Reinsurance Pool coming into effect on July 1 last year, only two insurers, Allianz Australia and Sure Insurance, have purchased cyclone reinsurance from the pool so far.
“After many years of fighting for a fairer deal for the people of Townsville, we were finally able to start paving a positive path forward when we legislated the Pool before the last election,” Mr Thompson said.
“But the Albanese Labor Government isn’t doing whatever’s needed to get the remaining insurers to sign up, despite the Pool starting 10 months ago.
“People are emailing me every week telling me their premiums are increasing 30-50 per cent. On top of interest rate rises, high power prices and the cost of groceries going up, it’s completely unaffordable.”
Despite the delays, a recent Parliamentary Inquiry on the Pool’s implementation found it was still a positive step to improving affordability of insurance in the North.
Some policyholders have contacted Mr Thompson saying they’ve been able to get a better deal by shopping around. One of those was Mount Low Resident, Jack Blissett, whose annual renewal was up 25 per cent on last year.
Mr Blissett said a quote from Sure Insurance – which has joined the Pool – resulted in a saving of 40 per cent.
“I was surprised when I got the renewal notice from the insurance company and I didn’t accept the fact that that was the correct premium,” Mr Blissett said.
“So I went chasing other companies and I found Sure Insurance whose premium turned out to be 40 per cent less than what our previous insurer was, who I’d been with for 44 years.”
Mr Thompson said he had once again written to insurances bosses as well as the Assistant Treasurer, asking for urgent action to speed up the implementation process.
He has also written to the Queensland Premier, asking for an end to stamp duty being charged on insurance premiums.
“The State Labor Government collects $65 million a year from stamp duty on home, contents, and strata insurance policies in North Queensland,” he said.
“Abolishing this tax would be a quick fix that instantly reduces North Queenslanders’ insurance bills by 9 per cent.”
ENDS