Cairns strata owners pin hopes to $10bn cyclone reinsurance pool

The great white hope of strata owners whose insurance bills have tripled in the space of a few years is finally on the cusp of coming before federal parliament.

THE great white hope of strata owners whose insurance bills have tripled in the space of a few years is finally on the cusp of coming before federal parliament.

Legislation for the proposed $10bn reinsurance pool has been unveiled before its anticipated first debate in Canberra on Tuesday.

It has been revealed the pool will be a work in progress with the promise of a review after 12 months when gaps in the coverage will be considered.

It is all good news for the likes of Seclusion apartments body corporate chairman Ross Dingle, who has watched premiums increase from $60,000 to $184,000 since 2019.

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Now the insurance firm behind the spikes, Strata Unit Underwriters (SUU), has spoken out in support of the Morrison Government’s proposed reinsurance pool – which is expected to be passed without opposition from Labor.

SUU was the only firm willing to provide insurance to the unit complex despite it never being damaged during a cyclone beyond a couple of burst rainwater pipes.

“We’re dedicated to offering insurance across the region, and our premiums reflect the higher risk associated with the extreme weather events in Northern Australia,” an SUU spokesman said.

SUU has backed the reinsurance pool but wants to see more details about how it will be rolled out.

“We know we’re going to see more intense, extreme weather events, particularly in Northern Australia, and the reinsurance pool is an important step in helping to ensure the availability and affordability of insurance for communities across the region,” the spokesman said.

“We look forward to the design and implementation of the pool being finalised.”

Some changes have already been made to the design to include commercial strata buildings that are 50 per cent residents, as opposed to 80 per cent originally quoted.

However, all short-term accommodation buildings insured for more than $5m are excluded from the legislation.

Insurance advocate Margaret Shaw said she was backing the legislation as it stood because she had a commitment that a review would occur after the first year.

“I understand that you’ve got to walk before you run,” she said.

Cairns-based Labor Senator Nita Green has been asked for comment.

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Originally published as Cairns strata owners pin hopes to $10bn cyclone reinsurance pool