Northern Australia insurance inquiry final report finds more than a quarter of NT homeowners can’t afford insurance

MORE than a quarter of Territory homeowners do not have insurance on their properties because they can’t afford it, according to the final report of the ACCC’s three-year Northern Australia insurance inquiry.

MORE than a quarter of Territory homeowners do not have insurance on their properties because they can’t afford it, according to a new report.

The Australian Competition and Consumer Commission released a final report this week following its three-year Northern Australia Insurance inquiry, which found home, contents and strata insurance premiums are, on average, considerably higher in Northern Australia than the rest of the country.

The report also found insurance premiums in 2018-19 were almost double those in the rest of Australia, with the average premium for combined home and contents insurance across Northern Australia about $2500, compared to $1400 across the rest of Australia.

As a result, the report found the NT had the second highest rate of home building non-insurance in the country, with 26 per cent of properties following north Western Australia at 40 per cent of properties.

More than a quarter of Territory homeowners do not have insurance on their properties because they can’t afford it, according to a new report. Picture: iStock

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ACCC deputy chairwoman Delia Rickard said insurance costs were so unaffordable because of the higher prevalence of natural disasters in Northern Australia.

“People are paying at least $1000 more a year for their insurance in the NT (than the rest of Australia),” Ms Rickard said.

“It has led to people cancelling their insurance because they can’t afford it, which is not a good position to be in.”

However, Ms Rickard said governments and insurance companies should be doing more to help keep Territorians insured.

“One of the primary recommendations (from the report) is that the government provides subsidies for lower income insurers who have higher premiums,” she said.

“We’re arguing existing customers who fall upon hard times should be able to have payment plans premium waivers, paying premiums at a lower rate over a period.

“We know we all fall on to hard times from time to time as 2020 has shown us.”

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Ms Rickard said unaffordable insurance in the region has wide-reaching and long-term effects.

“The government is committed to a strong and prosperous Northern Australia, and part of that is ensuring people can afford to live there,” she said.

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