Reinsurance pool for Northern Australia won’t be delivered by July 1

Far North homeowners counting on cuts to insurance premiums promised by the former federal government will be dismayed to learn the reinsurance pool won’t be ready by July 1 – and maybe not even this year.

FAR North homeowners awaiting cuts in whopping insurance premiums will be dismayed to learn the much-anticipated Northern Australia Reinsurance Pool will not come in by July 1 – and maybe not even this year.

Under the legislation passed in late March, homeowners were expected to see premium discounts of up to 46 per cent, strata properties up to 58 per cent and small and medium-sized business up to 34 per cent, according to Federal MP for Leichhardt Warren Entsch.

Senator Susan McDonald said when the bill passed that it would kick in on July 1.

Northern Australia Insurance Lobby (NAIL) chair Tyrone Shandiman said the Australian Reinsurance Pool Corporation (ARPC) was still finalising things, having issued draft reinsurance rates in late May.

Northern Australia Reinsurance Pool will not come in by July 1. SOURCE: Courier Mail

“It won’t hit consumer policies by July 1, insurers haven’t received all the information from the federal government,” Mr Shandiman said.

“We expected it to impact policies from July 1 but insurers have said it would be impossible – it may not be until the end of this year.

Cairns-based Queensland Senator Nita Green said she’d asked assistant treasurer Stephen Jones to visit North Queensland to explain.

“I share industry concerns that the Morrison government flagrantly misled North Queenslanders about the design and benefits of the reinsurance pool scheme,” Ms Green said.

She said the government had refused to release modelling to support claims of savings of up to 46 per cent.

Federal MP for Leichhardt Warren Entsch, pictured with wife Yolonde, said he was determined to see the government’s $10b reinsurance pool take effect. Picture Emily Barker

Mr Entsch said he’d contacted Finance Minister Katy Gallagher’s office in a bid to solve the issue.

“Nita Green's a political apparatchik transplanted here to needle me, right from the beginning she’s played politics and now she’s an actual member of government, get out there and work on a solution.” Mr Entsch said.

“The government in opposition supported this in its entirety,” he said.

He said senior government figures were “desperately keen” for the scheme to work so it could be applied to flood and bushfire-affected areas.

“I’m here for the next three years and I’m keen – I’ve been quite disappointed people are telling me when they ring the big insurance companies, they are playing dumb on it, which doesn’t surprise me.”

Insures have until the end of 2023 to implement the reinsurance pool changes.

Insurers have until the end of 2023 to implement the reinsurance pool changes.

Short term accommodation with a sum insured of more than $5m are not covered, there is a $5m limit for commercial buildings, and as aged care facilities are considered commercial, the $5m limit applies to them.

NAIL has called on the state government to ditch stamp duty on insurance.

Originally published as Reinsurance pool for Northern Australia won’t be delivered by July 1