Recommendations

Recommendation 1

4.16The committee recommends that the Australian Government ensure that future releases of modelling are provided well in advance of key dates in the ongoing roll-out of the Cyclone Reinsurance Pool.

Recommendation 2

4.28The committee recommends that the Australian Government review:

the availability and coverage of insurance in Northern Australia, specifically the insured versus the uninsured, including non-participation; and

the impact of the 48-hour clause on the cost of insurance premiums for Northern Australians, and the availability of insurance in the region as part of the built-in review in 2025, and adjust this clause if necessary.

Recommendation 3

4.33The committee recommends that the Australian Government direct the Australia Competition and Consumer Commission to monitor the cyclone insurance markets in Northern Australia, and report on:

instances where thin markets may be impacting both insurance coverage and cost; and

market participation, specifically under-insurance and the issue of lack of insurance in some areas.

Recommendation 4

4.36The committee recommends that the Australian Government announce a position on the inclusion of marine insurance in the Cyclone Reinsurance Pool.

Recommendation 5

4.42The committee recommends that the Australian Government facilitate a coordinated approach to land use planning, building codes, mitigation and disaster resilience that includes the National Emergency Management Agency and other levels of government.

Recommendation 6

4.44The committee recommends that the Australian Government’s 2025 review of the Cyclone Reinsurance Pool consider:

evidence and data on whether to ‘sunset’ the Cyclone Reinsurance Pool’s coverage of policies for new builds past a certain date; and

how to reinforce the policy objective of the Cyclone Reinsurance Pool to move to parity of cost and access for all Australians.

Recommendation 7

4.53The committee recommends that future reviews of the Cyclone Reinsurance Pool consider the sum insured limit under the business property policy.