Member for Herbert Phillip Thompson calls on federal government to hear Townsville residents’ experiences on rising insurance

A North Queensland politician is urging the federal government to consider the needs of the North and the ‘devastating impacts’ of skyrocketing insurance premiums.

Flash flooding in Townsville after heavy overnight rain. Daniel Leoni in the backyard of his Suttor Street home in Mysterton. Picture: Evan Morgan

A North Queensland politician has urged the federal government to consider the needs of the North and the ‘devastating impacts’ of skyrocketing insurance premiums, as part of a review into the Cyclone Reinsurance Pool.

The Australian Reinsurance Pool is a public financial corporation started in 2003, with the Cyclone Reinsurance Pool commencing on July 1 2022, as a “longer-term vision to support insurers to deliver affordable terrorism and cyclone insurance in Australia.”

Federal member Herbert Phillip Thompson said after the recent 2025 floods in North Queensland, many in the region are being forced to go without insurance due to being unable to afford it - and he said the insurance pool was not working.

Federal Member for Herbert Phillip Thompson with Neville Macklan at his home.

“…they face the very real prospect of not being able to put food on the table if they continue to pay ever - rising, exorbitant premiums. This situation is simply unacceptable,” he said.

In April, Garbutt homeowner Neville Macklan shared his struggle with the Townsville Bulletin after receiving insurance quotes ranging from $2000 to $14,000 and thinking he may have to go without due to the costs.

“I just want to take insurance out like most people,” Mr Macklan said at the time.

Over the past weeks, Mr Thompson said he had heard from more locals struggling with the cost of insurance, including one who received a renewal notice with a $28,000 increase.

“Insurance companies are making up their own rules and it’s time their feet were put to the fire and savings from the Cyclone Reinsurance Pool passed on to consumers.” Mr Thompson said.

Flash flooding in Townsville after heavy overnight rain. Tow truck driver inspects car stuck in flooded section of Bayswater Tce. Picture: Evan Morgan

Mr Thompson said at the time that he had sent a letter to the chair of the Government’s Australian Reinsurance Pool Corporation Julie-Anne Schafer, as he says the “Pool is not working as per its original intention”

Now, he said he was willing to work with the Australian Government and ARPC and has invited both parties to Townsville to hear first-hand from locals for “real solutions.”

“ It is simply unfeasible to think that the onus should be on locals to sift through a 94 - page ACCC report to better understand what is occurring within an initiative supposed to make lives better,” she said.

The Australian Reinsurance Pool Corporation, in a statement through a spokesman, said they were in discussions with Mr Thompson.

“We have received a letter from Phillip Thompson OAM MP which proposes a number of policy changes to the cyclone pool. Those policy changes will be referred to the statutory review of ARPC which will be run by the Treasury and commence later this year. We have also received an invitation to attend an event to be convened by Mr Thompson and will respond to him separately.”

Originally published as Member for Herbert Phillip Thompson calls on federal government to hear Townsville residents’ experiences on rising insurance