The Northern Australia Insurance Lobby (NAIL) hosted what it described as a constructive discussion with MPs following the insurance industry’s reaction to the draft legislation on the cyclone reinsurance pool.
The reinsurance pool aims to help households and small businesses in cyclone‑prone areas access and afford insurance. The draft proposes that a review take place three years after the legislation is passed because the latest date insurers must prescribe to the reinsurance pool is December 2024.
On December 04, the government released the draft legislation on the reinsurance pool for cyclones and related flood damage. However, the draft was considered unsatisfying by some in the industry and even received a “resounding thumbs down” in a recent treasury roundtable discussion attended by NAIL.
Recently, NAIL met with Warren Entsch MP, George Christiansen MP, and representatives for Senator Susan McDonald about the draft legislation, claiming that it will:
Read more: Draft legislation for cyclone reinsurance pool given a "resounding thumbs down"
NAIL has been working actively with the government to ensure that the legislation is right for consumers. Considering the draft and its recent discussions, it offered the following recommendations:
“In our discussions, we felt the politicians in attendance stood on the side of consumers and took the time to understand the concerns we raised. It was nice to get a sense that we had a sympathetic ear of the politicians in attendance and get [an] agreement that they would take up our cause. We are hopeful we can get legislation passed that is fit for purpose for consumers when it is passed early next year,” said NAIL chairperson Tyrone Shandiman.