The Northern Australia Insurance Lobby Inc (NAIL) have some concerns whether consumers will see the benefit of the Federal Governments Cyclone Flood Reinsurance Pool from 1st July.
NAIL has recently contacted Treasury, Insurance Council of Australia and five insurers (Suncorp, IAG, QBE, Allianz, & RACQ) and advice thus far suggests:
The Australian Reinsurance Pool Corporation (ARPC) is finalising implementation arrangements, and has been consulting bi-laterally with insurers.
The ARPC issued a draft of the reinsurance rates in late May and feedback has been provided to the ARPC who are currently considering it.
Insurers have their work cut out for them to analyse pricing impacts of the reinsurance pool, change reinsurance arrangements and apply premium changes at a “household” level by 1st July.
Many insurers have expressed it is unlikely they will be in a position to implement the reinsurance pool to consumers on 1 July, some hinting it would be impossible.
Large insurers have until December 2023 to have all eligible policies transferred into the reinsurance pool. NAIL expects some insurers to take full advantage of the extended timeframes.
“Consumers have been eagerly awaiting the release of the reinsurance pool which is designed to provide much needed premium relief to policy holders who are dealing with issues of affordability and availability of insurance. We know there has been a lot of work done by various stakeholders to get the reinsurance pool to consumers by 1st July. Given the affordability issues being currently experienced, we know this news may come as a disappointment to consumers, particularly as we have been informed some policy holders have altered the expiry of their insurance policies in anticipation of reinsurance pool release. Given the lack of affordability of insurance in Northern Australia, we can only hope consumers will receive benefit of the reinsurance pool as soon as possible.” NAIL Chairperson Tyrone Shandiman said.
NAIL is working constructively with all stakeholders to ensure the Cyclone Reinsurance Pool is fit for purpose and meets the needs of consumers. We will be closely monitoring the impact the reinsurance pool has on consumers.
In other news, former NAIL chairperson Margaret Shaw has departed NAIL due to personal commitments. The committee acknowledges her commitment to consumers in Northern Australia and thank her work that she has done.
NAIL is pleased to announce we have recently appointed Dawn Romanella to the fill the vacant committee position. Dawn is originally from Canada, has a Bachelor of Education and a Licence in Real Estate. Dawn is the Asset and Property Manager at Coral Sea Marina Resort, the largest destination marina in Australia. Dawn has lived in Australia for 22 years and currently resides in the Whitsundays. She is a proud mother to four children and enjoys travelling and keeping fit. Dawn is a great new addition to our team, particularly given Marine insurance will be a focus in the coming year.