Reinsurance Pool Consultation Paper

Submissions for the Treasury reinsurance pool consultation paper closed on 18th June 2021. Northern Australia Insurance Lobby Inc (“NAIL”) has outlined the following key objectives it believes Treasury should focus on to effectively design the reinsurance pool:

• Consumers in northern Australia should pay no more for their insurance per dollar value insured compared to policy holders in other parts of Australia with similar natural disaster risk, such as bushfires, storm or hail

• The reinsurance cost payable by consumers should not attract state government stamp duty, GST or commissions – for example this may be done by charging the reinsurance cost as a levy and not as part of the premium

• The eligibility criteria for the reinsurance pool should extend to as many policy holders as possible

• Design and pricing should be easy for the Australian Reinsurance Pool Corporation (ARPC) and insurers to implement, and easy for consumers to understand how they can continue to reduce their premiums

The consultation process has brought up some difficult issues Treasury will have to deal with in the design of the reinsurance pool, for example, who might receive the greatest benefit from the reinsurance pool and how small business is defined.

In addition to our key priorities, NAIL believes the below items should be tabled for discussion:

• A portion of reinsurance premiums collected should fund mitigation measures

• Risk assessment should be done on any type of property at the request of the owner, with proper dispute resolution process

• The reinsurance pool should be expanded to cover a broader range of events or all catastrophe events in the future

To view NAIL’s full submission to the Treasury-led Taskforce follow the below link:

NAIL Reinsurance Pool Response

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For more information about this media release, contact Tyrone Shandiman on 07 3899 5129 or Margaret Shaw OAM via email info@nail.org.au.

Consumer Representative Group Established for Northern Australia Insurance Crisis

The Northern Australia Insurance Lobby Inc has recently been established as a not-for-profit consumer representative for policy holders in North Queensland on the issue of affordability, and availability, of insurance in Northern Australia.

The cost of insurance in Northern Australia has created an insurance crisis which is having a devastating impact on economies and the livelihood of citizens in communities north of the 26th Parallel (for example Rockhampton and North on the Queensland coast).

Federal Government Announcement: $10billion Federal Government reinsurance pool

• As a group we welcome this;

• We believe a reinsurance solution backed by the federal government is an effective way to resolve this insurance crisis in Northern Australia.

Who are we? We are here to:

• represent people at the coal face

• work with the government and all stakeholders to ensure the re-insurance solution is fit for purpose and truly meets the needs of policy holders in Northern Australia.

• advocate for a solution that is available to the right demographic

• provide meaningful assistance on the issue of affordability and availability of insurance.

The committee of Northern Australia Insurance Lobby are here to listen and be part of the discussion. The people working on behalf of consumers and who are nominated committee members include:

• Margaret Shaw OAM (co-chair) – Retired from the IT industry in 2002 but has been a strong advocate of insurance in North Queensland since 2011;

• Tyrone Shandiman (co-chair) – Managing director of Strata Insurance Solutions since 2011 and has dealt with a number of body corporate committees who have had issues related to affordability and availability of insurance.

• Bradley von Xanten (Treasurer) Financial Planner (retired) and is currently the chairperson of Unit Owners Association QLD since 2019;

• Eva Rankmore (Secretary) Has worked for Strata Insurance Solutions/Coverite Insurance since March 2014;

• Jan Clifford (General Committee) Councillor at Whitsunday Regional Council, Chairperson of Whitsunday Housing Co Ltd & Director/Company Secretary of RDA - Mackay, Isacc, Whitsunday;

• Jeff Aquilina (General Committee) Managing Director of at Hotel Group (managing 7 resorts/holiday apartments in Whitsunday);

• Terry Brown OAM (General Committee) Committee Chairperson for Sea Star Apartments and owner of six Barber’s shops

Further information about Northern Australia Insurance Lobby can be found on our website https://www.nail.org.au/