Cairns insurance premiums set to drop as $10bn cyclone pool moves through parliament

The federal government’s reinsurance pool has passed through the House of Representatives with just one more step before it becomes reality.

THE federal government’s reinsurance pool has passed through the House of Representatives with just one more step before it becomes reality.

Touted as a premium-busting measure that specifically targets cyclone-prone regions, the $10bn pool will now go before the Senate.

The Coalition is anticipating bipartisan support, with the measure set to be legislated during the March sitting week and become law on July 1.

Leichhardt MP Warren Entsch said it was a huge win for the Far North and for his campaigning.

Leichhardt MP Warren Entsch has been trying to get the reinsurance pool up for 11 years. Picture: Getty Images

“The thing that really annoyed me was that Labor stood up and said it had taken the Coalition nine years to get this across the line,” he said.

“The reality is I’ve been trying to do this for 11 years.

“The first treasurer I put this to was (Labor’s) Wayne Swan in 2010, and he refused to do it. In fairness, I also went to Joe Hockey in 2013 and he said no too.”

Legislation and its application will be revisited after a year to “tweak” any issues.

It will reportedly bring down premiums for some of the “worst affected” homeowners by up to 46 per cent, with strata properties set for 58 per cent discounts and small businesses getting 34 per cent relief.

Cyclone-prone communities will be targeted under the $10bn reinsurance pool. Picture: Wesley Monts

Those figures have been questioned by Labor due to a lack of clarity about how the equations were carried out.

Labor has now called on the reinsurance scheme to be extended to flood and bushfire cover.

Mr Entsch did not rule it out.

“Now we’ve just got to make sure it works,” he said.

“To all the spear chuckers having a whack at me on this over many years, let’s have a look at it.

“If you see any gaps in it, don’t go jumping up and down, let us know so we can make sure we get them fixed in the first year of review.”

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Originally published as Cairns insurance premiums set to drop as $10bn cyclone pool moves through parliament